Parents Allied with Children and Teachers

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PACT Charter School
7250 E. Ramsey Parkway
Ramsey, MN 55303
 314_Annual Budget Process Policy
 Date created: 
 Committee Approval by: 
 Date Approved:  Reviewed:
 2008  BFC  20160728  2016-17
 BRD  20160804

DEFINITIONS

  1. Abbreviations

    1. BFC refers to the Budget & Finance Committee of PACT Charter School
    2. BRT refers to the Budget Review Team (defined below)
    3. LIBS refers to Line Item Budget Supervisors. For this document, LIBS include Treasurers.
    4. PRS refers to the Personnel Committee
    5. CE and CEs refers to Capital Expenditure(s) (over $1000)
    6. BDT refers to the Board Treasurer who is the elected official charged with fiscal oversight of PACT.
  2. Departments

    1. For purposes of budgeting, scope, oversight, and expenditures, the following departments are defined:
      1. Elementary Program
      2. Secondary Program
      3. Special Education
      4. Title Programs
      5. Personnel
      6. Transportation
      7. Building Operations (includes technology)
      8. Administrative
      9. Food Service
      10. Fundraising
      11. Extracurricular
      12. Board
    2. Detailed information about these departments is contained in a separate document, referenced in the 317 - Master Financial Policy with file name prefix Policy-BudgetDepartments-20yymmdd-

 

PROCESSES

  1. For the upcoming fiscal year budget

    1. Departments (through their LIBS) submit to the Board Treasurer (BDT) and administration a "wish list" of CE needs for the following fiscal year. (October)
    2. Executive Director (ED) and BDT meet to discuss school wide needs and set date for BRT meeting. (October)
    3. BDT obtains revenue projection from MDE for the following budget year. (November)
    4. BDT schedules and chairs a meeting of BRT to discuss and prioritize CE requests. (November)
    5. Curriculum committees develop curriculum budget requests and forward them through their respective Treasurers to the BDT, administration, and the respective Steering Committees. (December)
    6. PRS makes salary recommendations to BFC through the Executive Director and the Board Treasurer. (December)
    7. Board determines the set salary and hourly adjustments for all staff not on a pay matrix. (January)
    8. Board Treasurer, Executive Director and HR and Finance Manager utilizing prior and current year expenditure history, assemble a preliminary budget that allocates CE, personnel and curricular expenses, and departmental budget targets. (January)
    9. BFC discusses and approves the preliminary budget. (late January)
    10. The preliminary budget is presented to the Board for approval. (February)
    11. The approved preliminary budget is presented to the departments (through the LIBS) with a request for detailed (line by line) budget requests (excluding CEs). (March)
    12. Detailed budget is discussed and approved by BFC. (April)
    13. Board approves the detailed budget. (May)
    14. Approved budget, with 5-year projection (including projected fund balances) is sent to Bond Trustee (Wells Fargo), Dougherty & Company, Significant Bondholders, and MDE (if required) by June 15.
  2. For revising the current year budget

    1. Monthly changes to the budget are communicated to the Board through a Budget Consent Agenda prepared by the HR and Finance Manager. These monthly amounts are approved by the Board as adjustments to the official budget.
      1. In revising the budget, unused funds budgeted to textbooks (OBJ 460) and curriculum development (PGM 610), unless needed for Semester 2 courses, may be reverted without issue to the Board contingency. Second semester needs must be communicated to the Administration (Executive Director, Program Directors and H/R Finance Manager) by November 1.
      2. Funds from the Board Contingency Fund can be allocated to various accounts throughout the year based on needs.
    2. Any increases to the Fund Balance following the annual audit will be discussed by the Board. The Board may use these funds for current year expenses or may place them in the Board Contingency Fund as long as the 5 year Fund Balance remains at least 20%.
    3. A revised budget, reflecting all changes on the Budget Consent Agenda, will be presented to the Board for approval at the December meeting.
  3. For managing unspent end of year funds

    1. Departmental spending deadline is April 15, except for funds that cannot reasonably be spent before then (bus fuel, field day, graduation, end of year awards, etc.)
      1. Textbook and Curriculum Development funds must be spent or encumbered by February 15. After that date they will automatically be reverted to the Board Contingency.
    2. Program Treasurers report remaining funds from program budget to BFC. (late April)
    3. Board Treasurer and administration determine funds available that may be used for CEs in the current fiscal year. (late April/ early May)
    4. If necessary, Board Treasurer schedules and chairs a second meeting of BRT to discuss and prioritize CEs that can be completed in the current fiscal year, based on available remaining funds. (early May)
      1. Previously discussed CEs may be re-prioritized based on new information.
      2. Funds freed up for the next fiscal year by pulling CEs into the current year will result in an increase in the Board contingency fund, unless next year's budget is modified and approved by BFC and the Board.

 

BUDGET REVIEW TEAM (BRT)

  1. BRT Mission Statement: To analyze the overall needs of the school and make recommendations for CEs and major expenses related to the whole school.
  2. BRT Operations:
    1. Board Treasurer is the chair of BRT.
    2. BRT has no independent authority. Its purpose is advisory only. No decisions are made at BRT meetings and no decision-making authority is granted to BRT. There is no quorum requirement and no votes are to be taken or recorded.
    3. BRT is not a committee of the Board nor is it a decision making body, and therefore it is not subject to the Minnesota Open Meeting Law. Meetings will generally be open to the public.
    4. Board Treasurer and Administration may also collect and assess CE information outside a gathering of BRT members.
  3. BRT Membership:
    1. Executive Director
    2. Business Accounts Specialist
    3. HR and Finance Manager
    4. Board Treasurer (functions as BRT Chair)
    5. ESC Chair or rep
    6. Elementary Program Director
    7. SSC Chair or rep
    8. Secondary Program Director
    9. BFC member
    10. Facilities Coordinator
    11. Technology Coordinator or committee rep
    12. Curriculum Coordinator