Fund Balances PowerPoint Presentation

Fund Balances PowerPoint Presentation

2016-08-05 64K 64 0 0

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What are fund balances? . Why does _____ ISD maintain a fund balance in the General Fund?. Why is Discussion of District Fund Balances Timely?. The State Legislature Convenes on 1/11/2011. State lawmakers estimate a deficit of $18b.+. ID: 434284

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Presentations text content in Fund Balances

Slide1

Fund Balances

What are fund balances?

Why does _____ ISD maintain a fund balance in the General Fund?

Slide2

Why is Discussion of District Fund Balances Timely?

The State Legislature Convenes on 1/11/2011

State lawmakers estimate a deficit of $18b.+

One option for closing this deficit is to require school districts to use local resources in place of state revenue

This option may be attractive to state lawmakers because of misconceptions of fund balance

State-mandated use of our fund balance will be devastating to our district

Slide3

Our District’s Fund Balance Policy

Example:

_______ ISD Annual Operating Policy:

A financial goal of the district shall be to have a sufficient balance in the operating fund to be able to maintain fiscal independence in case of financial needs or crisis.

The district shall strive to maintain a yearly fund balance in the general operating fund in which the total fund balance is 22.5% of total operating expenditures and the unassigned fund balance is 15% of the total operating expenditures.

Slide4

What are Fund Balances?

Districts use the General Fund to pay expenses related to instructing and transporting students.

Within the General Fund:

Assets – Liabilities = FUND BALANCE

The amount reported as district’s fund balance is a snapshot.

A fund balances will fluctuate daily.

Slide5

What are Fund Balances?

A fund balance may be:

“Reserved”, “Designated”, or “Unreserved, Undesignated”

Only the last category of fund balance is available for

any legal expenditure

Fund balances are the culmination of the board’s financial decisions over many years

Slide6

What a Fund Balance is not?

Fund Balance is not:

a Savings Account

a Rainy Day Fund

the result of unduly high taxes

Slide7

Why do district’s have fund balances?

Cash Management

Lower interest rates on district bonds

Unforeseen expenditures & Disasters

Ongoing support for educational programs

Best Practices

Slide8

What is the Recommended Level of Fund Balance?

The Government Finance Officers Association (GFOA) recommends an unassigned fund balance of “no less than two months of…regular general revenue operating expenditures.”

The Texas Education Agency’s (TEA) optimum fund balance calculation requires school districts to add two months of cash disbursements to amounts needed to cover any cash flow deficits.

Slide9

_________ ISD’s Fund Balance

______ ISD’s fund balance as of (end of fiscal year 2009/2010 was $______________

Reserved balances were $

Designated balances were $

The remaining unreserved, undesignated portion of ____________ ISD’s fund balance at (end of fiscal year 2009/2010) was $___________

Slide10

_________Isd’s Fund Balance – By the Numbers

_________ Isd’s fund balance is equivalent to:

$_____ per enrolled student

_____% of our annual operating budget

____ months of operating expenses

Our district’s fund balance [meets/fall short] of the GFOA/TEA standard.

Slide11

Recent Budget Activities Affecting _______ ISD’s Fund Balance

On July/August XX, the school board approved the 2010-11 school year budget

This budget uses XXXX of the fund balance to

Example 1 (Give teachers/personnel a salary increase)

Example 2 (Provide xxx program to increase student achievement in ___________)

OR:

The 2010-11 school year budget added $____ to the fund balance


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