PACT Charter School

Original Creation Date: 2008
Last Approved By: PACT Charter School Board of Directors
Last Approved Date: June 3, 2021
Year Reviewed: 2020-2021

PURPOSE 

The purpose of this policy is to guide the Board through the budgeting process.

POLICY STATEMENT

The Board of directors must set an annual budget to fund the daily operation of PACT Charter School.

DEFINITIONS 

Abbreviations 

1. BFC refers to the Budget & Finance Committee of PACT Charter School 
2. LIBS refers to Line Item Budget Supervisors. For this document, LIBS includes Treasurers. 3. CE and CEs refers to Capital Expenditure(s) (over $1000) 
3. BDT refers to the Board Treasurer, who is the elected official charged with fiscal oversight of PACT.

Departments 

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. Facilities 
8. Technology
9. Administrative 
10. Food Service 
11. Fundraising 
12. Extracurricular 
13. Board 

PROCESSES 

For the upcoming fiscal year budget: 

1. January—The Superintendent of Schools works with the finance management company to notify all departments of the requested budget numbers for the next fiscal year. 
2. February—The Finance management company provides questions and clarifications to budget requests and presents the preliminary budget to the Superintendent of Schools and Business Account Specialist. 
3. March - The Budget and Finance Committee reviews the preliminary budget, providing feedback, changes, and comments to the Superintendent of Schools and the financial management company. 
4. April—The Budget is presented to the School Board of Directors for review, feedback, changes, and comments. It may be approved at this time. 
5. April - (If the budget was not approved in April by the School Board of Directors) the Budget and Finance Committee reviews any comments from the Board making the needed changes/edits. Provides final recommendation to the School Board of Directors. 
6. May—The School Board of Directors would review the budget if it was not approved before this. The budget then moves between the Budget and Finance Committee and the School Board of Directors until it is approved. 
7. June - the latest date the School Board of Directors can approve the budget. 
8. Approved budget, with a 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. 

For revising the current year budget 

Changes to the budget are communicated to the Board through monthly financial statements from the finance management company. A revised budget, reflecting changes, will be presented to the Board for approval at the March meeting.

For managing the unspent end of year funds 

1. As 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 increase the Board contingency fund unless next year's budget is modified and approved by BFC and the Board. 
3. Departmental spending deadline is April 15, except for funds that cannot reasonably be spent before then (field day, graduation, end-of-year awards, etc.) 
4. Program Treasurer’s report remaining funds from program budget to BFC. (late April) 
5. Board Treasurer and administration determine funds available that may be used for CEs in the current fiscal year. (late April/ early May) 
6. If necessary, the Board Treasurer schedules and chairs a second meeting to discuss and prioritize CEs that can be completed in the current fiscal year, based on remaining available funds. (early May)