Budgeting is a process whereby future income and expenditure are decided in order to streamline the expenditure process. The budget preparation process starts with the setting forth of the budget calendar.3 2. To achieve optimal financial management throughout the school year, it’s advisable to follow the 6 stages of school budget preparation process outlined below: 1) Develop a realistic timeline for the entire annual school budget process . Site-based budgeting is popular in many school settings. The process of creating an annual school district budget is a collaborative experience that should involve all stakeholders. PRINCIPLES AND PRACTICES OF BUDGETING IN SCHOOL FINANCE MANAGEMENT Explain the concept of budget, school budget and budgeting It serves as a monitoring and controlling method in order to manage the finances of a business. • Estimation of revenue (tax & non-tax, grants & loans, etc.) Budgeting by school sites decentralizes decision-making, thus promoting school staff input and providing for expenditure choices to meet student needs in the various schools.

Here are the basic steps to follow when preparing a budget: Update budget assumptions. The purpose of the school budget development process is to estimate the funds required to operate the school department’s educational and support programs for the coming year. of the budget process • You should intervene before the decisions you want to change are being made, not after . This guide provides an overview of the mechanics of the budget process and the documents most commonly used ... established district policies and procedures.This function is useful for budget development and the preparation of salary projections within a district. A beginner's guide to planning and managing school budgets ... 2 Understand the basic principles of school budgeting. The budget should be a financial reflection of the district’s goals and priorities, and should demonstrate a level of efficiency. The process of preparing a budget should be highly regimented and follow a set schedule, so that the completed budget is ready for use by the beginning of the next fiscal year. Chapter 4 – Budget Process and Transparency A school system’s budget is the vehicle for allocating financial resources to meet student needs. ... DfE Schools financial efficiency: top 10 planning … Budgeting is done in order to keep track of the expenditures and income. Budgeting Best Practices for School Districts Plan and Prepare Phase 1A – Develop Principles and Policies to Guide the Budget Process Page 4 of 7 Make performance data readily available. 4 • Modeling of the economy (macroeconomic forecast: GDP, growth, inflation, deficit, unemployment, etc.) The budget serves as an operational plan, stated in financial terms, for carrying out the mission of the school district. Budget development is not a “one-person show.” Instead, it is a team effort with the Superintendent of Schools leading the charge. The budget preparation process begins each year in September and continues through April 15 th, the deadline mandated for formal adoption by local boards of school district budgets in Iowa. The budget process should be informed by valid and reliable data on fiscal and academic performance. It begins by deciding upon the financial goals according to which the budget will be made. The planning stage of the compilation of your school budget is paramount to its success. Learn how all can be involved in the process. Site-based budgeting places local managers and other staff at the center of the budget preparation process, making them responsible for both the preparation and the maintenance of the budget.