Interpretation: 2.4. Financial Planning and Budgeting

  • 2.4. Financial Planning and Budgeting 

    The Superintendent shall not cause or allow financial planning for any fiscal year or the remaining part of any fiscal year to deviate materially from the board’s Ends priorities, risk financial jeopardy, or fail to be derived from a multi year plan. 

    Further, without limiting the scope of the foregoing by this enumeration, there will be no financial plans that: 

    1. Risk incurring those situations or conditions described as unacceptable in the board policy “Financial Condition and Activities (2.3).” 

    Interpretation: I interpret this to mean that the adopted budget shall not cause or allow the development of financial jeopardy or material deviation of actual expenditures from board priorities established in Ends policies by: 

    • Expending more funds than have been received in the fiscal year; 
    • Expending more funds than have been budgeted except when overages are accompanied with additional resources, such as grants or private donations; Spending any surplus revenues other than grants, private donations or restricted gifts; Use any long term reserve funds without board approval; 
    • Allowing for practices that do not comply with Generally Accepted Accounting Procedures; Operating without internal procedures that detect, deter, and prevent fraud; 
    • Operate without internal controls that prevent and ensure against tardy, inaccurate, specious or misleading financial reporting; 
    • Receiving, processing or disbursing the organization's assets under internal controls that are insufficient to prevent and detect significant deficiencies or material weaknesses; 
    • Allowing debts to be unsettled in an untimely manner; 
    • Allowing tax payments or other government-ordered payments of filings to be overdue or inaccurately filed; 
    • Accepting non-resident students unless tuition is being paid by another source or eligible tuition waiver.
    1. Omit credible projection of revenues and expenses, separation of capital and operational items, cash flow, and disclosure of planning assumptions. 

    Interpretation: I interpret this to mean that the adopted budget must be based on reliable planning assumptions. Cash flow must be appropriately managed for timely response to District needs and the integrity of capital and operational budgets must be maintained

    1. Provide less for board prerogatives during the year than is set forth in the Governance Investment Policy. 

    Interpretation: I interpret this to mean that the budget will contain the level of resources requested by and necessary to support the Board for its operations and professional development. 

    1. Omit disclosure of anticipated impact(s) of proposed budget. 

    Interpretation: I interpret this to mean that all anticipated impacts, including tax implications, legislative implications, facility implications, short and long term enrollment and class size rations, employment and leave concerns on proposed and adopted budgets will be fully disclosed to the Board and that proposed budgets will reflect all anticipated impacts.