Finance/Budget Overview: Grant Wood AEA

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Finance/Budget Overview Grant Wood AEA

• Barb Harms
• Business Manager
• Grant Wood Area Education Agency
• Management Team Meeting 12/1/06

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Review - AEA/LEA Finance

• What is common?
• State funding based on number of students
• Other revenues from grants, misc sources
• Allowable growth
• Weighted enrollment

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Review - AEA/LEA Finance

• What is different?
• Schools have taxing authority, AEAs dont
• LEA finance formula is more complex
• Schools have separate funding sources for
  facilities other costs
• AEAs generate revenues from sales of
  non-mandated services

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GWAEA Budget Process
Oct/Nov Verify Allowable Growth LEA Enrollment count
Dec Estimate available funds Set budget parameters
Jan Prepare State budget, hold public hearing, Board approval
Feb - May Negotiate contract settlements Prioritize funding requests
Jun - Jul Build line-item budget New budget takes effect
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Historical Financial Trends
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AEA Finance Formula

• Child-based allowable spending is based on
  number of students counted
• AEA cost per pupil X enrollment
• Formula is separate for 3 service areas (Media,
  Ed Services, Special Education)
• State has not released final budget enrollment
  figures usually 12/1

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2006-07 Budgeted Revenues

• Special Education 16,754,381
• Media Services 2,927,692
• Educational Services 3,213,132
• State Reduction (1,999,562)
• Controlled Funding 20,895,643

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Projecting Other Revenues

• Federal funds IDEA, Part C, etc.
• Various other state, local grants
• Sales of non-mandated services (such as printing,
  computer services, SEMS) look at trends of past
  revenues

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Sale of Service Revenues
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2006-2007 Budgeted Revenues
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2006-07 Budgeted Expenditures

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Historical Financial Trends

• Financial Solvency Ratio
• Standard measure of financial health
• Formula Unreserved Fund Balance
• General Fund Revenues
• Target Range Preferred 5.0 to 10.0
• Acceptable 0 to 4.9
• Alert -3.0 to -0.1

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Historical Financial Trends
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GWAEA Budget/Finance

• Next update look at web finance query system
  and account code structure
• Questions?