The MBA format encourages budget developers to present a single document organized in a user-friendly way that communicates plans for providing educational services in an easy-to-understand story that supports the school district’s activities with financial resources.
Any school entity, including local school districts, educational services agencies (BOCES), private schools, intermediate units, colleges, and universities, is eligible to participate in the MBA program. Membership in ASBO International is not required. School systems can apply annually.
Municipal bonding companies note the potential for higher rating actions with improved reporting of a strengthened financial position based on MBA program participation.
Most MBA submittals are from districts that previously achieved recognition and want to continue reinforcing to their constituents that they are meeting the highest levels of financial reporting. Some governmental entities use the MBA process to support districts experiencing financial difficulties. Municipal bonding companies note the potential for higher rating actions with improved reporting of a strengthened financial position based on MBA program participation.
School entities that have participated in this program cite the following benefits:
- Provides clear budget presentation guidelines.
- Defines state-of-the-art budget practices.
- Encourages both short- and long-range budget goals.
- Promotes sound fiscal management practices.
- Emphasizes effective use of educational resources.
- Highlights greater levels of transparency to the public.
- Facilitates professional growth and development for the budget staff.
- Builds solid skills in developing, analyzing, and presenting school entity budgets.
The MBA Process
Key components of the application process include organizing the document into major sections (Executive Summary, Organizational, Financial, and Informational); ensuring all necessary details are included, such as the budget year, school district information, and a clear table of contents; and responding to previous reviewer comments if applicable.
Applicants are guided by the Meritorious Budget Award checklist, a comprehensive guide designed to help school districts adhere to the criteria and create exemplary budget documents. The checklist emphasizes clarity, accuracy, and transparency, ensuring that budgets are well-prepared, logically presented, and error-free.
ASBO also offers a variety of resources to help districts create award-winning budgets, including sample budgets and webinars.
Once ASBO receives a complete application packet and processes the paperwork, copies of the budget document and application materials are forwarded to the review team members: school business professionals who are subject matter experts in their respective fields. As part of their review, the team members provide comments highlighting improvement opportunities. The district uses these comments as guidance when preparing subsequent budget submissions.
Award Categories
Once the review team has completed its work, applicants are notified of their application's status. Applications are awarded, conditionally awarded, or denied.
- Awarded — The MBA is awarded when the review team concurs that the budget documentation has met or exceeded the MBA criteria.
- Conditionally Awarded — A conditional award is given when the review team notes that several of the prior year’s review comments were unanswered or there was sufficient deviation from the MBA criteria. The district’s name is included in the list of awardees; the award letter and the reviewer's comments note the conditional award status.
- Denied — The award may be denied if the required MBA criteria have not been met, the financial data presented is not accurate, or there are conflicting financial data. Complying with the review team’s comments from the previous year is essential to be considered for the award the following year.
If the MBA is denied, a notification letter is sent to the school administrator who submitted the budget, along with comments from the review team on improving the document.
Those who receive the Meritorious Budget Award are recognized with a certificate and recognition through the ASBO website and news releases.
Be Recognized!
The annual budget is the most scrutinized and utilized document in school district financial reporting. Are you ready to gain the recognition deserved for your school district’s budget?