2013-14
SHELTONSCHOOL DISTRICT #309
Shelton, Washington
TABLE OF CONTENTS
I. Introduction ...... 2
II.Fund Accounting ...... 3
General Fund……………………………………………………………..3
Associated Student Body Fund…………………………………………4
Debt Service Fund ……………………………………………………….4
Capital Projects Fund……………………………………………………. 4
Transportation Vehicle Fund…………………………………………….5
III.The 2013-14 General Fund Budget...... 6
Sources of Revenue…………………………………………………….6
Expenditures……………………………………………………………..8
By Object……………………………………………………….8
By Program……………………………………………………..10
By Activity……………………………………………………….14
IV.Enrollment ...... 19
V.Staffing ...... 20
VI.Fund Balance History ...... 20
I. INTRODUCTION
The purpose of this document is to introduce the reader to the budgetary process and provide an explanation of the district’s annual budget.
All school districts in the state of Washington are required by law to prepare, submit and adopt an annual budget in a format prescribed by the Office of the Superintendent of Public Instruction (OSPI) i.e., the F-195 Budget Document. The budget year runs from September 1 of the current year through August 31 of the subsequent year. School district budgets use a fund accounting structure and unique revenue and expenditure classifications.
The SheltonSchool District schedules the annual budget to be reviewed and adopted by its Board of Directors during their regularly scheduled board meetings in August of each year. Since this district is a “first class” district, the budget must be adopted by August 31st of each year. A formal public hearing is held as part of the adoption process.
Pertinent data from the current 2013-14 budget is presented in this guide, with emphasis directed to the General Fund wherein the educational programs of the district are budgeted.
II. FUND ACCOUNTING
A Fund is a set of self-balancing accounts which are segregated for the purpose of carrying on specific activities. Because the District receives financial resources that may be used only in accordance with restrictions established by law or by agreement with donors or grantors the fund accounting system is employed.
Described below are the five basic funds used by the District. Four of these funds are to be used for very specific purposes and the other, the General Fund, is for the daily operations of the District that are directly and indirectly associated with the education of students. The funds are:
GENERAL FUND DailyOperations ofthe school district
ASSOCIATED STUDENT BODYExtracurricular student activities
DEBT SERVICEPrincipal & interest payments on voted and non-voted bonds
CAPITAL PROJECTSFacility construction & major improvements of facilities, purchase of land
TRANSPORTATION VEHICLEPurchase of Buses,
Major Repair of Buses approved
By OSPI
GENERAL FUND
The General Fund (GF) accounts for all cash and resources except those required to be accounted for in other funds. This fund provides for the ordinary operations of the school district, including all programs of instruction for students, maintenance of plant and facilities, administration of the district, food services and pupil transportation. The General Fund cannot be used for those purposes for which special funds have been established except under special rules which apply to Associated Student Body and Capital Projects Fund expenditures. A more complete summary of the General Fund begins in Section III of this guide.
2013-14 Budget Summary:GF Revenue $ 45,772,600
GF Expenditure$ 44,422,962
ASSOCIATED STUDENT BODY FUND
The Associated Student Body Fund (ASB) is financed by student body fees, activity gate receipts, donations and other approved student body fund raising activities. The ASB Fund is under the control, supervision and approval of the Board of Directors. One of the objectives of the ASB is to promote the self-government of associated student bodies. The funds held in the ASB are for the interscholastic and co-curricular benefit of students. The students, with adult supervision, administer the various associated student body programs. This district only has ASB organizations at the secondary level – CHOICEHigh School, Olympic Middle School, Oakland Bay Junior High, and SheltonHigh School.
2013-14 Budget Summary:ASB Revenue $ 693,445 ASB Expenditure $ 610,943
Individual ASB budget(s) are prepared and approved at the school level and are consolidated in the District budget process and presented as a single ASB budget.
DEBT SERVICE FUND
The law provides that a Debt Service Fund (DSF) be established in the county treasury for the payment of principal, interest and expenditures related to the redemption of outstanding bonds. Provision must be made annually for the making of a levy sufficient to meet payments of principal, interest and related expenditures for voted debt. Levy moneys collected are held by the CountyTreasurer in authorized interest earning accounts and/or securities until bond maturity or interest payment dates. On scheduled payment dates the Treasurer transfers the principal and interest due to the designated bond fiscal agents for remittance to the bondholders.
2013-14 Budget Summary:DSF Revenue $ 2,841,211 DSF Expenditure $ 2,846,539
CAPITAL PROJECTS FUND
The Capital Projects Fund (CPF) includes all moneys and resources for construction projects, the acquisition of land or existing buildings, construction of buildings, certain purchases of new equipment, conducting energy audits, and making capital improvements which are cost effective as determined by energy audits, and remodeling of buildings. The major replacement of roofs, flooring and service systems are also included in the CPF. The Capital Projects Fund is usually financed from the proceeds of the sale of bonds, state matching funds, special levies, growth impact fees and investment earnings.
2013-14 Budget Summary:CP Revenue$ 0 CP Expense $ 0
TRANSPORTATION VEHICLE FUND
The Transportation Vehicle Fund (TVF) accounts for pupil transportation equipment, primarily the purchase and major overhaul of school buses. Funding for this equipment is through state funding formula for depreciation on the existing fleet, operating transfers and special levy authorization. In contrast, the cost of operating the pupil transportation system is a General Fund expenditure.
2013-14 Budget Summary:TVF Revenue $ 152,677 TVF Expenditure $ 135,000
III. The 2013-14 GENERAL FUND BUDGET
When discussing the budget, it is the General Fund that most people are interested in as it has the most direct impact on the daily activity of the District’s students and staff.
SOURCES of REVENUE
The revenues estimated to be available for 2013-14 General Fund operations are received from the following sources:
General Fund Revenue BudgetLocal Taxes / $ 6,795,028 / 14.9%
Local Non-Tax / 795,250 / 1.7%
State - General Purpose / 23,694,740 / 51.7%
State - Special Purpose / 7,151,913 / 15.6%
Federal / 4,331,459 / 9.5%
Other (Districts,Grants,Financing) / 3,004,210 / 6.6%
Total / $ 45,772,600 / 100.0%
While all funding sources are important to the operation of the District’s programs, state funding is the largest single funding source. It should be emphasized these revenue figures are budgeted estimates; factors which might impact these estimates would include student enrollment variations, revisions in state funding, changes in federal funding, grant awards, etc.
The Accounting Manualprovides the following revenue classifications:
Local Taxes - Includes collection of voter approved maintenance of program and operations (M&O) levies.
Local Non Tax - Includes funds from the sale of material and goods, fines, summer school, traffic safety tuition, food service sales, investment earnings, facility use fees and school bus revenues.
State, General Purpose - Includes the formula driven apportionment for support of basic education, local effort assistance (LEA), state forest funds and timber excise taxes.
State, Special Purpose - Allotment for support of remediation, highly capable, handicapped children, transitional bilingual, food service, transportation, class size reduction, juvenile detention program, national board certification, and pilot programs, including early intervention, These revenues are also typically a formula driven allocation.
Federal, General Purpose - This category includes revenue from the distribution of federal forest fees. Theseamounts are equalized in the state distribution formula for the basic education allocation.
Federal, Special Purpose - This category includes funds for the education of handicapped and disadvantaged students, Vocational Education (Carl Perkins), Title 1, Title II (School Improvement), Title III (Limited English), Indian Education program, Rural Low Income, Gear Up, Medicaid Match and other federal grants. USDA food commodities are also recorded in this category.
Revenue from Other Districts - Includes non-high payments from the districts that do not have high schools and their high school students are served by SheltonSchool District. It also includes payments from the districts that are part of the Special Services Co-op and the Transportation Co-op.
Revenue from Other Entities - Revenues from agencies other than the Office of the Superintendent of Public Instruction, federal government and other school districts.
Other Financing Sources - Sale of equipment (surplus sales) and long-term financing.
PROPOSED EXPENDITURES
General Fund Expenditures for 2013-14 are budgeted to be $44,422,962.
General Fund Expenditures by ObjectCertificated Salaries / 18,413,820 / 41.45%
Classified Salaries / 7,481,257 / 16.84%
Employee Benefits / 9,900,383 / 22.29%
Supplies & Materials / 4,172,240 / 9.39%
Purchased Services / 4,214,491 / 9.49%
Travel / 108,771 / 0.24%
Capital Outlay / 132,000 / 0.30%
Total / $44,422,962 / 100.00%
- Certificated Salaries -- compensation, including substitutes and extended contracts of personnel covered by continuing contract law. (Primarily teachers and schools building administrators).
- Classified Salaries - compensation of employees other than those meeting the criteria of a certificated employee. Included would be supervisory, professional, technical, skilled, secretarial, clerical, grounds, food service and transportation employees.
- Benefits - is used to record all employer paid benefits. Included are Social Security (FICA), Health Care Benefits, Health Care Authority, Labor and Industries, Unemployment and Retirement.
- Supplies, Instructional Resources, and Non-Capitalized Items -
This object is used to record expenditures for supplies, instructional materials, and non-capitalized items. Supplies are expendable items that are consumed in use. Instructional materials are those materials used to instruct students in skills or knowledge in the classroom and/or in learning resource environments (libraries). Non-capitalized items are items of equipment that are not reported as “capital outlay” or that have a useful life of less than one year and/or have an acquisition cost that is less than $5000.
- Purchased Services - compensation for services rendered to the school district, with the exception of travel, by independent contractors or service providers and by persons who are not employees. The payment may include labor together with materials provided by the person performing the service. Examples are insurance, utilities, consultants, attorneys, auditors, repair services, rentals, and printing.
- Travel - expenditures for district related travel including fares, meals, lodging, mileage reimbursement and other expenditures necessitated by travel.
- Capital Outlay -are for items having an extended life of more than a year and have an acquisition cost beyond $5,000. This would include pieces of equipment such as tractors, vehicles, etc. or improvements to buildings and grounds infrastructure.
Expenditure by Program
Within each of the following programs, expenditures are classified by the Object of Expenditure as outlined in the following section.
For expenditure classification the Accounting Manual defines a ‘program’ as a plan of activities to accomplish a set of objectives. Shelton budgets, records and reports expenditures in twenty-nine of these pre-defined programs summarized as follows:
To assist the reader in understanding the activities covered by each of these programs and their relative financial scope the following summaries are provided.
Regular (Basic) Instruction
Program 01 – Basic Education
Expenditures budgeted here are to provide free appropriate kindergarten through 12th grade public education to pupils. Basic Instruction is the largest program in the General Fund Budget with budgeted expenditures for the 2013-14fiscal year of $21,963,341.
Program 02 - Basic Education – Alternative Learning Experience Expenditures budgeted here are for providing basic education to those students that are enrolled in an Alternative Learning Experience such as Parent Home Partnership and Contract Based Experience. The 2013-14 budgeted expenditures are $250,348.
Handicapped Education
Program 21 –Special Education – State
Covers the state and local direct costs for providing special education and related services for eligible special education children with budgeted expenditures of $ 4,324,804.
Program 22 –Special Education – Infants and Toddlers – State
Records expenditures for providing early intervention services to all children with disabilities from birth through age two. Program expenditures are budgeted at $73,142.
Program 24 –Special Education – Federal
Records expenditures from federal grants to assist in providing required supplemental services for students with disabilities. Program expenditures are budgeted at $774,589.
Career and Technical Education (Vocational)
Program 31 - Vocational – Basic – State
Records expenditures for the CTE programs approved for secondary schools. They include many courses in business, marketing, industrial arts, agriculture, health occupations, trade and industry, technology, family and consumer science and career education in both high schools and the junior high. Program expenditures are budgeted at $1,868,165.
Program 34 –Middle School Career and Technical Education – State
Records expenditures for the CTE programs approved for 8th grade students. Program expenditures are budgeted at $181,240.
Program 38 - Vocational – Federal
Records expenditures from federal grants for secondary Career and Tech Education programs. Program expenditures are budgeted at $47,625.
Compensatory Education
Program 51 –ESEA Disadvantaged – Federal
Title 1 and other various federal programs that assist districts in providing services to educationally deprived children living in low-income areas. McKinney-Vento Homeless Assistance is also located in this program. Title IA is the largest grant/allocation in this group. Program expenditures are budgeted at $1,052,981.
Program 52- Other Title Grants Under ESEA – Federal
These are federal grants designed to assist school districts in improving the quality of education. Expenditures are budgeted at $ 293,000.
Program 55 –Learning Assistance Program – State
State funded program that records assistance to students who are deficient in basic skills achievement in reading, mathematics, and language arts. Program expenditures are budgeted at $1,177,924.
Program 56–State Institutions, Center, and Homes – Delinquent
State Juvenile Detention program, records the costs of providing an educational program to youth who are incarcerated for a temporary period.Program expenditures are budgeted at $92,903.
Program 58–Special and Pilot Programs – State
Records expenditures of state funded special and pilot programs as defined by the state legislature. Included are some truancy funding, collection of evidentce, and National Board Certification. Program expenditures are budgeted at $166,521.
Program 64- Limited English Proficiency – Federal
Federal grant to assist school districts in developing and providing services to children with limited proficiency in understanding, speaking, reading, and/or writing English. Total budgeted expenditures are $71,308.
Program 65 – Transitional Bilingual – State
State funding that records expenditures for supplemental services for the benefit of students in the bilingual education program in the district. Under this program, an eligible student is one whose primary language is not English and whose English language skills are significantly deficient or absent. Program expenditures are budgeted at $325,322.
Program 68 – Indian Education – Federal
Federal assistance to develop and carry out programs designed to meet the unique educational and culturally related academic needs of Indian pupils in public schools. Total expenditures budgeted are $75,130.
Other Instructional Programs
Program 71 –Traffic Safety
Covers the direct costs of Traffic Safety education. Starting with the 1998-99 school year this program is managed by the Educational Service District. They are responsible for hiring the teachers and providing the program. Shelton School District collects the revenue and in turn pays the ESD for this service. Program costs are paid by fees collected from students. Program expenditures are budgeted at $ 26,500.
Program 73 – Summer School
Record expenditures for summer school programs. Program expenditures are budgeted at $61,000.
Program 74 –Highly Capable
Record expenditures for supplemental services for the benefit of highly capable pupils. Program expenditures are budgeted at $36,770.
Program 79 – Instructional Programs – Other
Record expenditures that are not directly identifiable with specific other instructional programs. Included in this category are the ECEAP program, Medicaid Match,Gear Up, E-Rate, Tech Prep program. Expenditures are budgeted at $ 604,984.
Community Services
Program 89- OtherCommunity Services
This program is where expenditures are recorded for the operation of the pool, auditorium, public relations, such as Community Link, etc. Total budgeted expenditures are $131,358.
Support Services
Program 97– District wide Support Services
Record shared expenditures related to operations of the school district as a whole rather than any particular program. It includes the activities of the Superintendent's office, human resources, business office, maintenance department, technology department, etc. Specific examples of expenditures include custodian's salaries, utility bills, insurance costs, major maintenance of facilities, etc. Program expenditures are budgeted at $6,452,264.
Program 98 –School Food Services
Record the costs of operating the district’s food service operations. Program expenditures are budgeted at $1,401,417. It is the district's goal to hold direct program costs to an amount equal to receipts from federal and state sources, USDA food commodities, plus lunch charges.
Program 99 –Pupil Transportation
Record expenditures for transporting pupils to and from school, including between locations in the district. Total program expenditures for both operations are budgeted at $2,970,326. The Mason County Transportation Cooperative (MCTC) consists of memberships and shared costs by Southside and Pioneerschool districts. The coop operations are primarily for the maintenance of buses, purchase of fuel, and some routing and reporting processes. All districts pay their own driver costs.
Expenditures by Activity