Education Service Center Region 11
2014-2015
Budget Planning Guidelines
DUE: June 2, 2014
Business Office Contacts:
Grant Anderson, Director of Business Services
Extension: 7610
PatriciaMelendez, Accounting/Finance Mgr.Laura Weir, Grant/Award Accountant
Budget and Business Solutions SoftwareGrant/Funding Awards and Applications
Extension: 7670Extension:3602
Brandilyn DePalma, Purchasing AccountantCharlene Summers, Payroll
Extension: 3637Extension: 3635
Becky Grainger, Accounts PayableCarol Kite, Purchase Orders, Cash Receipts
Extension: 3634Extension: 7642
Cheryl Caudill, Accounts Receivable
Extension: 7609
This document can be viewed on the ESC Website in the Business Center Section under Resources.
1
Table of Contents
Memo from the Director of Finance
Budget Calendar
Budget Builder Check List
I. General Budget Considerations and Procedures
Multi Year Contracts/Pre Paid Expenditures
Special Revenue Fund
Grant Awards and Applications Correspondence
Roll Forward Budgets
Line Item Budget Control / Budget Amendments
Start Up Purchase Orders
Cross Departmental Purchases
Membership Dues
State Base 102
Deferred Revenue
Fund Balance
Inventory/Capital Outlay Items
State Health Insurance Reimbursement / State Stipend
Cell Phone Stipend
Mileage/Hotel Rates/Meals
Internal Service Funds
Other Allocations
II. Guidelines for Estimating Revenue
III. Guidelines for Appropriating Expenditures
Offsite Presentation Codes
IV. Guide to Using the Budget Builder
APPENDIX A: 2014-15 INTERNAL SERVICE CHARGES
Schedule 1: Building Services Internal Charges
Schedule 2: Business Services Internal Charges/Allocations
Schedule 3: Educational Tech Department Internal Charges
Schedule 4: Instructional Services Division Internal Charges
Schedule 5: MIS Department Internal Charges
Schedule 6: Conference Room Rental Fees [6299-11]
Schedule 7: Copy Center Charges [6299-12]
Schedule 8: Aministrative Development Internal Charges
APPENDIX B: FUND CODES (LOCAL AND INTERNAL SERVICE FUNDS)
APPENDIX C: FUNCTION CODES
APPENDIX D: REVENUE CODES
APPENDIX E: OBJECT CODES AND DESCRIPTIONS
Education Service Center Region 11
Business Office
October 14, 2018
TO: Directors, Coordinators, and Budget Managers
FROM: Grant Anderson, Director of Business Services
SUBJECT: Preliminary Budget Planning for Fiscal Year 2014-2015
It is time once again to begin budgeting for September 1, 2014 through August 31, 2015. Please use this Budget Planning Guideline while you prepare your 2014-15 budgets. Budgets are due to the business office by June2, 2014. Some of the amounts, allocations, and rates (including payroll) may change. If changes impact your budget significantly, adjustments will be made prior to submitting to the Board. Minor changes will require budget amendments once the budget has been established in the new fiscal year. These are best estimates used in order for each department to begin the budget process.
The business office continues to assist each department in planning and developing budgets. Please make sure your Deputy Executive Director has approved your budgets prior to submitting to the Business Office. The Executive Director will present the budget to the Board of Directors in a Budget Workshop and submit to the Board for adoption by August 31, 2014.
We typically do not receive final allocation amounts from various funding sources until well into the summer. Also, Executive changes may occur as a result of budget review. Therefore, during the budget process you may need to make assumptions based on current year activity and estimate future anticipated changes. You may also be asked to adjust various aspects of your budget after the submission.
This coming year you will see the following changes in the guidelines:
1)Business Solutions Software Guidelines have been updated for current year
This software package is internally developed to help the business office gather and distribute financial information not available with the Center’s current Business TxEIS Software. The business solution software is installed for center personnel dealing with budget and business issues. This is not a center wide software or solution.
2)Internal Service Charges Additions and Changes
Building Rate – 13-14 rate will be used until TEA approves new rate.
3)Budget Calendar
The budget calendar is a preliminary timeline for the submission of your budgets.
Month / Day / DescriptionApril
May / 25
5 / Handout budget guidelines
Budget Builder Available
June / 2 / Budgets due
July / 1 / A701 SAS due to TEA
August / TBD / Final amended budget due to board
August / TBD / Board budget workshop
August / TBD / Board approval of FY 2014-2015 budget
Please feel free to contact Patricia Melendez, Accounting/Finance Manager or Grant Accountant, or Director of Business Services for any questions relating to your budgets.
Budget Builder Check List
[ ]Read Budget Guidelines
Revenue
[ ]Estimate Revenue
[ ]Justify Revenue
Payroll
[ ]Adjust % of Allocation
[ ]Verify Distribution Code
[ ]Verify Room Number
[ ]Verify Computer Type
Internal Charges (see Appendix A: 2014-15)
[ ]Verify functions on ALL 6299 object codes (functions should normally be same as payroll functions)
[ ]Network: Adjust budget to include “other” network services
[ ]Building: Budget based on payroll function. Do not use function 51. (may need to add new line)
[ ]CRIS: Budget object code 6299-04 based on budget guidelines
[ ]Division/Department Infrastructure charge. Amounts are provided by Deputy Directors.
[ ]Telephone Equipment Usage. $6.67/month per active phone/fax line. This is not 6256 $10/month per phone/fax line.
Expenses
[ ]Inventory and Capital Assets: Justification Required
[ ]Verify Account Distribution Coding
Approval
[ ]Obtain Deputy Director Approval before submitting to business office
[ ]Submit electronically to business office by June 2, 2014.
Calendar for Close-out of Budgets
Special Revenue Funds closing prior to 8/31
Last day to process purchase order: 10 working days prior to close of the fund
Last day to process expenditure forms, including travel reimbursement: no later than 5 days after the close of the fund
Last day to amend budgets: 10 working days prior to the close of the fund
Last day to receive merchandise & invoices: 5 working days prior to the close of the fund
______
All other funds
On or next
Business day
Following:
July 23Next year requisition system will be open for data entry of September purchase orders. See “Next Year Requisition Data Entry”.
August 1Last date to amend budgets
August 8Last date for submission of Purchase Orders.
August 15Requisition system will be closed for year-end audit
August 22Next year requisition system will be closed for data entry of September purchase orders. See “Next Year Requisition Data Entry”.
August 22Last date to receive merchandise and invoices. Please note this date on all Purchase Orders. All unpaid Purchase Orders will be cancelled, and merchandise received after this date will be returned to the vendor.
August 25Last date to receive external invoice forms for current year
August 29Submit external billing forms to Business Office for all contracts that require multiple budget codes
September 2CRIS submits contract invoice report for contract billings to be invoiced prior to October 1st
September 4Last date to receive travel reimbursement requests, consultant expense forms, and any request for payment of 2013-14 fiscal year transactions.
September 5Business Office Goal to have requisition system open. This date may be delayed due to a number of reasons, including volume of purchase orders at year end, turn around time of information from departments, and system delays.
I. General Budget Considerations and Procedures
- Special Revenue Funds
1. Purchasing Authorization
Itis everyintention ofESCRegion 11's Business Officetoassure that the goods or services being purchased out of Special Revenue funds have been authorized by the Program Coordinators or Directors and/or Deputy Director as “permissible expenditures” within program funding guidelines. All expenditures, including Purchase Orders and Payment Authorization forms, paid out of Special Revenue budgets are approved by the Program Coordinator or Director and/or Deputy Director. Program Coordinators or Directors and/or Deputy Directors of Special Revenue funds are held responsible for making the determination as to whether or not the expenditures are "permissible expenditures" out of Special Revenue Funds and making sure the purchase is delivered to and utilized fully by the fund from which the purchase was paid.
The approval and submission of this purchase order by Coordinators or Directors and/or Deputy Directors attest that the goods or services purchased with this purchase order are permissible, and have beenor will be fully delivered to and utilized by the funding program within the program period stated in the applicable funding application.
2.Beginning and Ending Dates
Due to (1) the delay of Federal fund approval, (2) board approval, (3) the need to manage spending down of “old” federal funds prior to new, and (4) preventing overlapping and the need to roll forward federal programs with two or more program years, funds with program dates from 7/1 – 9/30 are established in ESC’s budget effective 9/1 – 8/31. Some circumstances may exist for two program periods of a Federal Program to overlap within one budget period. These circumstances need to be documented in writing to the Director of Business Services for approval and prior to establishing the fund.
3. Grant Awards and Applications Correspondence
When applying for new or renewed grants and awards, please notify Business Office Grant Accountant as soon as you intend to apply for the grant or award. Business Office Grant Accountant’s responsibility includes reviewing and completing the on-line budget portion of all grants and awards.
B. Multi Year Contracts/Pre Paid Expenditures
In an attempt to protect current administration from obligating future boards, under the following circumstances the center may enter into contracts for services/subscriptions which cross fiscal years:
1)The services are paid from local funding
2)The services/contract is approved by the Executive Director
3)The contract has a financial benefit (savings) in the current year and future periods
4)Local dollars can pay for the contract and be reimbursed by State/Federal dollars in the future periods
5)Accounting of the full payment will be allocated on a monthly/weekly basis to current and future periods (expensed) if total monthly allocation reaches $500 or greater.
6)State and Federal dollars cannot be used for future services which are received by the center past the grant/program period end date.
C. Roll Forward Budgets
Due to the nature of accounting and the fiscal year end process all budgets are fully accrued at the end of the year. Therefore, all budgets go through a year end closing process. The Center manages some funds which roll forward to the next fiscal year. These funds are closed as of August 31 and re-established as of September 1 with the ending balances reflected in the general ledger. Encumbrances at the end of the year are transferred from prior fiscal year to the new fiscal year.
Examples of Roll Forward budgets are local type grants which have been established in fund number(s) 180’s, Federal and State awards which end after 8/31.
D. Line Item Budget Control / Budget Amendments
The Center’s prescribed budget practice reflects line item budget control for all funds. The business office monitors funds on a line item bases. Departments are notified by the business office when accounts go over budgets. No purchases are processed on line items with insufficient funds.
Budget amendments are processed by the business office on a daily basis. All budget amendments require approval by Deputy Executive Director of Admin & Business Services prior to posting the amendment to departmental budgets.
E. Start Up Purchase Orders
Special circumstances may require departments to process purchase orders prior to the beginning of the fiscal year. In these special situations, departments will complete a manual purchase order. Departments will provide the business office with a written request detailing the need for the purchase order prior to the beginning of the fiscal year.
F. Next Year Requisition Data Entry
It is the goal of the Business Office to process purchase orders for next year’s budget as close to the 1st of September as possible. Our goal is to have all budgets, including roll forward budgets, established and accessible for purchase orders by September 5th. In order for us to establish accurate roll forward amounts all end of the year adjustments, including time and effort, needs to be posted to the general ledger prior to rolling forward budgets.
The Business Office is making available the ability to data enter requistions (with no budget code) into next year’s requisition system the last full week of July. This is for data entry purposes only. Do not submit these requisitions for approval. Next year’s purchase orders will be processed after September 5th. Normally, the business office has an overwhelming number of purchase orders to review and process at the beginning of the fiscal year. Therefore, limit the processing of purchase orders at the beginning of the fiscal year for those purchase orders which need to be processed prior to October 1. Please see “Start Up Purchase Orders” for purchase orders which need to be processed prior to establishing next year’s budget.
After the books have been opened for the new year, you will need to go into these requisitions to assign budget codes and submit for approval.
If you believe your department has a need to enter next year requisitions into the system prior to September 5th, please notify TxEIS Business Office Contact with the names of the individuals who will be data entering. TxEIS Business Office Contact will provide individual training.
G. Cross Departmental Purchases
When a purchase order is needed which includes budgets for more than one department, please notify the business office. The business office will complete the purchase order, allocate to the budgets based on an itemized allocation plan, and secure required signatures.
H. Membership Dues
The Center has been directed by the State to avoid using State funds for memberships to entities which may lobby. Therefore, the business office has established the following account code for those membership dues to entities which may lobby: 173-41-6497-02-108-Y-99000. Please provide the Business Office with a list of memberships you plan to pay out of Center funds for the new fiscal year. Please include all membership dues unless you have documentation from the entity stating they do not lobby.
I. State Base 102
Each year the center receives State Base funds. These funds are allocated by the Executive Director each year. When budgeting State Base Funds, please be reminded that the number may change based on re-allocation by the Executive Director. State Base funds must be spent prior to August 31.
J. Deferred Revenue
In some situations, departments receive revenue in the current year for next year services. These circumstances require that the Center defer the revenue into the next fiscal year. At the time of billing please provide the business office a memo stating the reason these funds should be deferred. The revenue must be posted to the period in which the services are performed and the expenditures for the services are realized. Deferred revenue is posted at the end of each monththerefore your realized revenue may be over stated during the month. Please make sure you consider deferred revenue when analyzing budgets.
Prepaid registrations for workshops which take effect next year will be deferred by Accounting Manager prior to close of fiscal year.
K. Fund Balance
At the end of the year all local non-deferred funds “left over” are applied to the center’s fund balance. Also, any deficit realized by the center reduces the center’s fund balance. In some situations, a department may need to budget against fund balance. In these special circumstances, a detailed memo will be submitted to the divisions Deputy Director and approved by the Executive Director. The business office will help establish the budgeted fund balance after the authorized memorandum has been received by the Executive Director. Although, a department may budget against fund balance actual adjustment to the fund balance will be based on departmental and center-wide realized revenue over expenditures at fiscal year end.
L. Inventory/Capital Outlay Items
Please submit a memo to the business office for all inventory items and capital outlay prior to purchasing. The business office will secure the approval of the Executive Director for these items after review by purchasing.
M. State Health Insurance Reimbursement / State Stipend
The monthly$75 State Health Reimbursement for employees taking health insurance is realized as revenue in the General Fund (Revenue budget code: 177-00-5812-00-999-Y-00000)of which 50% is transferred to the Infrastructure Fund (794/465). The remainder is transferred to the Visioning Network Fund (173/110).
The TRS Annual Supplemental Compensation of$500 and $250for eligible employeesis deposited into 177-00-5812-01-999-Y-00000 and expensed through payroll out of fund 177 along with associated medicare, workcomp and unemployment cost.