School Budgeting: Principles and Techniques

School Budgeting

Principles and Techniques

1. Objectives of financial management budgeting

 To help the school to achieve its educational and administrative objectives

 To meet statutory requirements
 To control the school’s financial resources
 To maximise the use of available resources
 To assist in effective decision making
 To develop systems for the efficient running of the school
2. What is budgeting?
 “An estimation of planned events expressed in quantitative terms”

 A future plan expressed in monetary terms
 It is a financial plan of action against which financial transactions are
benchmarked
3. Advantages of a budget
 It ensures that the day to day operations of the school are geared towards
achieving its objectives
 It fixes school management to a definite plan and eliminates ad hoc decision
making
 It enables Trustees to fulfil their supervisory role in ensuring the financial well-
being of the school
 It encourages communication on key issues between all the parties involved
 It enables the objectives of all parties in the school community to be aligned with
the objectives of the school
4. Planning the budget – basic strategies and assumptions
 A formal approach is adopted.

 The Principal prepares the budget with the assistance of the Board of
Management Finance Sub-Committee
 Encourage participation and involvement e.g. seek submissions from teachers,
school departments and other relevant parties
 A formal approach is adopted
 Ensure key information is available
o projected student enrolment
JMB Financial Support Services Unit

o projected enrolment in specific courses such as Transition Year and
Leaving Certificate Applied
o all grant entitlements
o expected number of teachers whether permanent, temporary, RPT or part-
time paid by the school.
 A school budget assists the Principal to manage the school finances on a day to
day basis
 Schools may not budget for a deficit without Trustee approval and must explain
how the deficit is to be funded
5. Developing the budget

 The budget process for the next school year begins in January
 The Board of Management Finance Sub-Committee meets with the Principal to
begin the process and seeks submissions from all relevant groups within the
school.
 No single programme or school department has an automatic right to funds.
 The key areas of the budget and assumptions underlying it are identified
 Identify areas of capital spending and refurbishment which are necessary or
desirable
 Identify the opening position for the start of the next school year from the current
budget and from past experience
 Cash and bank balances
 Creditors and accrued expenses
 Begin with revenue: determine total resources available and identify all revenue
sources
 Department of Education and Skills grants
 School generated income
 Other income to fund day to day spending such as Parents’ contributions,
voluntary subscriptions and fundraising (Revenue for Capital Spending is
considered separately).
 Be conservative – if in doubt, leave it out.
 Gather all information regarding all possible expenditures – distinguish between
essential or unavoidable spending and discretionary spending. Do not consider
any items of capital spending (e.g. new computers or furniture) at this stage.
 Collate the expenditure budget under the main account headings:
 Education – Salaries
 Education – Other Give specific
 Repairs, Maintenance, Establishment details
 Establishment under each heading
 Administration
 Finance
 Depreciation (estimated charge)

 Apply the revenue budget to the expenditure activities based on
 Pre-determined priorities
 Allocations over the past few years
 Realistic assumptions e.g. the expected price of heating oil.
 So – not enough income to meet expenditure? Adjust and change.
 There will never be enough income to do everything desired – the process
requires negotiation and compromise.
 If using a computerised accounts package, enter all details specifying the month
where this known of all items of income and expenditure
 Submit the proposed budget to the Board of Management for approval or
adjustment before the end of March.
 Submit the proposed budget to the school Trustees in accordance with procedures
laid down by them.
6. Capital expenditure
 Capital expenditure is expenditure of a once off nature rather than recurring. The
purpose is to acquire an asset or advantage of a lasting nature for the enduring
benefit of the school. No extension, improvement or replacement of the school
building may be undertaken without the prior written approval of the Trustees.
 The Board of Management may identify necessary or capital expenditure required
for the coming year
 Seek quotations based on purchasing and tendering procedures outlined in the
guidelines
 Identify capital receipts which may be available to finance capital expenditure
 State grants
 Fund-raising
 Parents’ contributions
 Donations
 Submit proposals to the Board of Management for approval
 All capital expenditure plans must be submitted to the Trustees for final approval
or otherwise, in accordance with procedures laid down by them.
7. Budget Template
 Download the Budget Template from the JMB website and enter all relevant data
gathered
 Enter the budget on TAS as a Forward Budget

Preparing the Budget for the School Year 2012/2013
1. Student Enrolment:
Total Projected Student Enrolment at September 1, 2012 ____________
Projected Enrolment – Leaving Certificate Applied ____________
Projected Enrolment – Transition Year ____________
Projected Enrolment – Junior Certificate Schools Programme ____________
Special Needs Students ____________
Travellers ____________
Projected Enrolment – PLC Courses ____________
2. Teacher Information for 2012/2013
Total number of Permanent Posts (PWT) ____________
Number of Teachers Job-Sharing ____________
Number of Teachers on Career Break or Secondment ____________
Number of CID Teachers (in WTEs) ____________
Other DES paid part-time hours (in WTEs) ____________
Part-time hours paid by the School (in WTEs) ____________
Number of Teachers Contracted for Supervision and Substitution ____________
3. Ancillary Staff 2012/2013
Number of External Supervisors ____________
School Secretary paid by DES (1978 Scheme) ____________
School Secretary paid by School - Full-time ____________
School Secretary paid by School – Part-time ____________
School Caretaker – Full-time ____________
School Caretaker – Part-time ____________

Other Personnel paid by School - Specify ____________
4. Capital Programme 2012/2013
A. Proposed Capital Expenditure
 New buildings, extensions, major refurbishment (Specify)
______________________________________________
______________________________________________
Estimated Cost € _________
 Furniture, Fittings and Equipment (Specify)
______________________________________________
______________________________________________
Estimated Cost € _________
 Computer Equipment (Specify)
______________________________________________
______________________________________________
Estimated Cost € __________
Total Capital Expenditure € ________
Funding to finance Capital Expenditure:
Department of Education and Science Capital Grants € _________
Parents’ Association / Council € _________
Parents’ Contributions € _________
Fundraising € _________
Other € _________

Total Capital Revenue € _______
Opening Financial Position on September 1, 2012
Cash at Bank:
Current Account Balance at September 1, 2012 € ________
Deposit Account Balance at September 1, 2012 € ________
Other Investments at September 1, 2012 € ________
Debtors:
Estimated amount owing TO the School at September 1, 2012
SPECIFY
Total € ________
Creditors:
Estimated amount owing BY the School at September 1, 2012
SPECIFY
Total € _________

ESTIMATED INCOME AND EXPENDITURE ACCOUNT AS AT
AUGUST 31, 2013
€
Balance Available for Current Spending
at September 1, 2012 _____________
Total School Income for the Year _____________
Total School Expenditure for the Year _____________
Balance at August 31, 2013 _____________

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School Budgeting

Principles and Techniques

1. Objectives of financial management budgeting

 To help the school to achieve its educational and administrative objectives

 “An estimation of planned events expressed in quantitative terms”

4. Planning the budget – basic strategies and assumptions

 A formal approach is adopted.

JMB Financial Support Services Unit

5. Developing the budget

JMB Financial Support Services Unit

 Enter the budget on TAS as a Forward Budget

JMB Financial Support Services Unit

Total Projected Student Enrolment at September 1, 2012 ____________

Projected Enrolment – Leaving Certificate Applied ____________

Projected Enrolment – Transition Year ____________

Projected Enrolment – Junior Certificate Schools Programme ____________

Special Needs Students ____________

Projected Enrolment – PLC Courses ____________

2. Teacher Information for 2012/2013

Total number of Permanent Posts (PWT) ____________

Number of Teachers Job-Sharing ____________

Number of Teachers on Career Break or Secondment ____________

Number of CID Teachers (in WTEs) ____________

Other DES paid part-time hours (in WTEs) ____________

Part-time hours paid by the School (in WTEs) ____________

Number of Teachers Contracted for Supervision and Substitution ____________

3. Ancillary Staff 2012/2013

Number of External Supervisors ____________

School Secretary paid by DES (1978 Scheme) ____________

School Secretary paid by School - Full-time ____________

School Secretary paid by School – Part-time ____________

School Caretaker – Full-time ____________

School Caretaker – Part-time ____________

JMB Financial Support Services Unit

4. Capital Programme 2012/2013

A. Proposed Capital Expenditure

 New buildings, extensions, major refurbishment (Specify)

Estimated Cost € _________

 Furniture, Fittings and Equipment (Specify)

Estimated Cost € _________

 Computer Equipment (Specify)

Estimated Cost € __________

Total Capital Expenditure € ________

Funding to finance Capital Expenditure:

Department of Education and Science Capital Grants € _________

Parents’ Association / Council € _________

Parents’ Contributions € _________

JMB Financial Support Services Unit

Current Account Balance at September 1, 2012 € ________

Deposit Account Balance at September 1, 2012 € ________

Other Investments at September 1, 2012 € ________

Estimated amount owing TO the School at September 1, 2012

Estimated amount owing BY the School at September 1, 2012

JMB Financial Support Services Unit

Total School Income for the Year _____________

Total School Expenditure for the Year _____________

Balance at August 31, 2013 _____________

JMB Financial Support Services Unit