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 prior to fully expending any functional category in a Board-adopted fund or at any time a significant change in revenue becomes known to the administration.

Fund Balance

The District shall maintain fund balance in accordance with Governmental Accounting Standards Board Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. This policy shall apply to the District's general fund and all governmental funds.

Fund balance, the difference between assets and liabilities in the governmental fund balance sheets, shall be organized into the following classifications:

Non-spendable — Not in a spendable form, such as inventory, or required to be maintained intact, such as the principal of a permanent fund.

Restricted — Resources that are subject to constraints that are either imposed by law through constitutional provisions or enabling legislation, or externally imposed by creditors, grantors, contributors, or laws or regulations of other governments.

Committed — Amounts that can only be used for specific purposes determined by formal approval of the Board, the District's highest level of decision-making authority. These amounts shall not be used for any other purpose unless the Board removes or changes the specified use by taking the same type of action it used to commit the amounts.

Assigned — Amounts that the District intends to use for a specific purpose and are neither restricted nor committed. The intent to assign amounts for a specific purpose shall be expressed by either the Board or the Superintendent.

Unassigned — The residual classification for the general fund balance and includes amounts that are not contained in the other classifications. Unassigned amounts are the portion of fund balance that is not obligated or specifically designated and is available for any purpose.

The unassigned fund balance of the general fund shall not be less than three months audited expenditures for the previous year.

When the District incurs an expense for which it may use restricted, committed, assigned, or unassigned assets, the District shall reduce restricted, committed, and assigned assets first, in that order, unless unassigned assets would have to be returned because they were not used.

This policy shall be reviewed as part of the annual budget adoption and amendment processes, and the amounts of restricted, committed, assigned, non-spendable, and the minimum level of unassigned fund balance shall be determined during these processes.

Killeen ISD

CE(LOCAL)-X

LDU 2015.01

DATE ISSUED: 5/5/2015