CE(LOCAL) - ANNUAL OPERATING BUDGET

Fiscal Year

The District shall operate on a fiscal year beginning September 1 and ending August 31.

Budget Planning

Budget planning shall be an integral part of overall program planning so that the budget effectively reflects the District's programs and activities and provides the resources to implement them. In the budget planning process, general educational goals, specific program goals, and alternatives for achieving program goals shall be considered, as well as input from the District- and campus-level planning and decision-making committees. Budget planning and evaluation are continuous processes and shall be a part of each month's activities.

Budget Meeting

The annual public meeting to discuss the proposed budget and tax rate shall be conducted as follows:

The Board President shall request at the beginning of the meeting that all persons who desire to speak on the proposed budget and/or tax rate sign up on the sheet provided.

Prior to the beginning of the meeting, the Board may establish time limits for speakers.

Speakers shall confine their remarks to the appropriation of funds as contained in the proposed budget and/or the tax rate.

No officer or employee of the District shall be required to respond to questions from speakers at the meeting.

Authorized Expenditures

The adopted budget provides authority to expend funds for the purposes indicated and in accordance with state law, Board policy, and the District's approved purchasing procedures. The expenditure of funds shall be under the direction of the Superintendent or designee who shall ensure that funds are expended in accordance with the adopted budget.

Budget Amendments

The Board shall amend the budget when a change is made increasing any one of the functional spending categories or increasing revenue object accounts and other resources.

Fund Balance

Fund balance shall mean the gross difference between governmental fund assets and liabilities reflected on the balance sheet. Fund balance classification shall be recorded in accordance with the governmental accounting standards as promulgated by the Governmental Accounting Standards Board (GASB).

Definitions

General Fund

The general fund is used to account for all financial resources not accounted for and reported in another fund.

Special Revenue Funds

Special revenue funds are used to account and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects.

Debt Service Funds

Debt service funds are used to account for all financial resources restricted, committed, or assigned to expenditure for principal and interest.

Capital Projects Funds

Capital projects funds are used to account for all financial resources restricted, committed, or assigned to expenditure for the acquisition or construction of capital assets.

Permanent Funds

Permanent funds are used to account for resources restricted to the extent that only earnings, and not principal, may be used for purposes that support the District's purposes.

Reporting

Fund balance will be reported in governmental funds under the following categories, using the definitions provided by the Governmental Accounting Standards Board:

Nonspendable Fund Balance

Nonspendable fund balance includes amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact.

Nonspendable amounts shall be determined before all other classifications and shall consist of the following, as applicable in any given year:

The District shall maintain a fund balance equal to the balance of any long-term outstanding balances due from others, including other District funds.

The District shall maintain a fund balance equal to the value of inventory balances and prepaid items, to the extent that such balances are not offset with liabilities and actually result in fund balance.

The District shall maintain a fund balance equal to the corpus (principal) of any permanent funds that are legally or contractually required to be maintained intact.

The District shall maintain a fund balance equal to the balance of any land or other nonfinancial assets held for sale.

Restricted Fund Balance

Restricted fund balance includes amounts that can be spent only for the specific purpose stipulated by the constitution, external resource providers, or through enabling legislation.

Committed Fund Balance

Committed fund balance includes amounts that can be used only for the specific purpose determined by a formal action of the Board.

Commitments shall only be used for specific purposes pursuant to a formal action of the Board. A majority vote is required to approve commitment and a two-thirds majority vote is required to remove a commitment.

Assigned Fund Balance

Assigned fund balance includes amounts intended to be used by the District for specific purposes but that do not meet the criteria to be classified as restricted or committed. In governmental funds other than the general fund, assigned fund balance represents the remaining amount that is not restricted or committed.

Delegation

The Board delegates to the Superintendent the authority to assign amounts to be used for specific purposes. Such assignments cannot exceed the available fund balance in any particular fund.

Unassigned Fund Balance

Unassigned fund balance includes the residual classification for the District's general fund and includes all spendable amounts not contained in the other classifications. In other funds, the unassigned classification should be used only to report a deficit balance from overspending for specific purposes for which amounts had been restricted, committed, or assigned.

Order of Expenditure

The order of spending and availability shall be to reduce funds from the listed areas in the following order: restricted, committed, assigned, and unassigned. Negative amounts shall not be reported for restricted, committed, or assigned funds.

San Augustine ISD

CE(LOCAL)-X

LDU 2012.01

DATE ISSUED: 1/12/2012