By creating a budget that follows ASBO International’s Meritorious Budget Award criteria, the school community has a complete picture of the district’s financial position and more! The comprehensive framework is a tool that many school business administrators use, including Ben Pape, chief financial officer for the Galena Park Independent School District in Houston, Texas.
“The process of preparing the budget that meets the rigorous MBA criteria has significantly enhanced the clarity, transparency, and overall quality of our budget documents,” Pape says. “It has become the cornerstone of our annual budgeting process, offering a strong framework for organizing and presenting budget data in a clear, comprehensive, and reader-friendly format.”
In an environment where effective business administration is frequently taken for granted, the achievement of the Meritorious Budget Award truly does put a feather in the cap of the business official for all to see.
Overview of the Framework
The initial section of the budget is an Executive Summary that informs the public about the district’s goals and objectives, discusses the process of developing the budget, and describes the development timeline in detail. This section provides information regarding district governance, including board members and first-level administrative personnel.
An overall summary of the district’s revenues and expenditures for each fund is provided, as well as a forecast. Enrollment trends and financial and demographic changes that affect the budget are also included. This section alone provides enough information to give the reader a solid understanding of the budget before diving into greater detail in the sections that follow.
Missy Glenn, EdD, executive director of finance and federal programs for the Birdsville Independent School District in Haltom City, Texas, believes that “achieving ASBO’s Meritorious Budget Award demonstrates the district’s commitment to full financial transparency to the board of trustees, staff, students, and the community. Not only are we able to share our district’s goals, objectives, and detailed use of district resources, but we are also able to share possible future plans and the impact our district can have on the community.”
The Organizational Section describes the district in terms of its geographical boundaries and legal autonomy, including whether it is fiscally independent or dependent.
In this section, the district further defines its strategic plan by identifying specific resources that have been allocated to achieving major goals and objectives. Fiscal policies and accounting protocols are defined, along with state legislation or regulations that govern the development, submission, adoption, and implementation of the budget.
The Financial Section presents budget details in a pyramid approach: (1) the total budget encompassing all funds, (2) the budget organized by fund, and (3) the detail by source (revenues) and object (expenditures) for each fund. An optional fourth level presents budget information by program or location.
The budget data encompass an eight-year period, with three years of historical data, the current year budget, the proposed budget, and three years of budget forecasts.
The Informational Section provides a look back and forward at assessed valuations and tax rates. The effect of the tax rate on the average taxpayer over five years provides a look at the impact of the budget on local community residents. Enrollment history and personnel allocations offer insight into changes the district may be experiencing that affect the overall fiscal planning for both the proposed budget year and the near future.
This section also includes performance data regarding student achievement on standardized tests, graduation and/or dropout rates, and other accomplishments of students and faculty that the district may choose to highlight. Socio-economic factors, such as the percentages of students receiving free or reduced-price meal assistance, lend additional background information about the student population served by the district.
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Recipe for Success
Following the MBA criteria is a recipe for success in developing and presenting a budget that is comprehensive and provides a detailed look at not only the revenue and expenditure numbers but all aspects of the district operations, including debt service obligations, capital projects, and the specific objectives funded by the budget to support the attainment of the district goals. By reviewing student outcomes and other district accomplishments, the reader also has a window into the effectiveness of district spending.
Pape shares that internally, “participation in the program has also fostered greater collaboration across departments and strengthened the alignment between our financial planning and the district’s strategic goals. This alignment has been instrumental in supporting thoughtful, data-driven decision-making at all levels.”
The comments from various MBA program participants lend validity to the process as one that can showcase the strengths of the district’s fiscal operations and provide recognition for the dedicated business official who has primary responsibility for developing what most would consider to be the backbone document for all district operations.
As Glenn explains, “Being able to achieve the award has allowed our district the ability to share our success with the community, as well as further complement our commitment to excellence within every financial decision.”
In an environment where effective business administration is frequently taken for granted, the achievement of the Meritorious Budget Award truly does put a feather in the cap of the business official for all to see.