2007-08 Adopted Plan - Wake County Public School System

Budget Administration and Management ProcessBudget administration and management is the process of regulating expendituresduring the fi scal year to ensure that they do not exceed authorizedamounts and that they are used for intended, proper, and legalpurposes. The management of the budget is accomplished in a varietyof ways: reconciling budget transactions on an ongoing basis, reviewingexpenditure patterns, tracking revenue receipts, monitoring projected fi -nancial status at yearend, reconciling exception reports, and reporting tothe board and public on fi scal operations.During the preparation of the budget, the document itself serves as thevehicle for planning and resource allocation decisions. After the boardadopts the budget, it then becomes the major fi scal management tool foradministering and controlling expenditures.OrganizationThe decision-making authority is based on an organizational structureof primary and secondary budget managers and school improvementteams. All principals and Leadership Team members are primary budgetmanagers. Principals may choose to establish assistant principals assecondary budget managers. Leadership Team members may establishsenior directors and directors as primary budget managers. LeadershipTeam members may choose to establish central services senior administratorsor administrators as secondary budget managers.All budget managers are responsible for assuring and maintaining theaccuracy of account coding, spending funds appropriately, and adheringto timelines for recording and expending funds.Budget managers must complete 1.5 days of Finance Certifi cation Trainingbefore signature authority is established. Additional classes are offeredto provide instructions for entering data directly into the computersystem, as well as how to navigate the fi nancial system to inquire onaccounts.The overall spending and revenue plans are coordinated by central servicesto maintain total expenditures within available revenues. Districtlevel coordination is also exercised over position control of months ofemployment in areas such as classroom teachers, instructional support,and non-instructional support. However, budgetary allocations to costcenters are provided in line item amounts and decisions on how to allocatethese monies are made at the school site or departmental level.Expenditure Control and ApprovalsFor management control purposes, the budget is arranged into cost centers.There is one cost center for every school and for each cabinetmember. Budget managers are responsible for the management of fi scalresources approved by the board for each of the cost centers. In areas ofcentral monitoring of positions, the fi nance offi cer is the budget manager.Thus, every expenditure appropriation in the budget is assigned to a budgetmanager who is accountable for the proper expenditure of funds.Each budget manager is authorized to approve the expenditure of fundswithin their respective cost centers provided that funds are expended inaccordance with purchasing procedures and legal requirements. Primarybudget managers must sign budget transfer requests and budgetamendments. The fi nance department monitors comparisons betweenbudget and actual expenditures to prevent overspending.Encumbrance ControlEncumbrances are obligations in the form of purchase orders, contracts,or salary commitments chargeable to an appropriation and for which partof the appropriation is reserved. The purpose for the encumbrance offunds is to insure that obligations are recognized as soon as commitmentsare made. The fi nancial system, therefore, recognizes actualexpenditures as well as those that are planned or anticipated. This preventsthe inadvertent overspending of the budget.Encumbrances in the State Public School Fund and Federal GrantsFund lapse at fi scal yearend, and the transactions are cancelled. Encumbrancesin the Local Current Expense Fund and Capital Outlay Fundare carried over to the next fi scal year. These amounts are reserved inthe fund balance and are appropriated at the beginning of the next fiscalyear.81 FY 2007-08 Plan for Student Success