Budget Badge #05 - Budget: Expenditures-Budget Badge #5

Budget Badge #5 - PowerPoint

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This document explains how school district budgets handle expenditures, with emphasis on Materials, Supplies and Operating Costs (MSOCs). Expenditures are charges incurred that benefit the budgeted fiscal year and represent the district’s plan to use available resources. Once a budget is adopted, it provides the district legal authority to spend and raise money; appropriations authorize spending up to specified amounts. Expenditures are reported by program (e.g., regular or special education), activity (e.g., instruction or administration), object/NCES code (e.g., salaries, purchased services), and location (school sites).<br /><br />While salaries and benefits typically make up 80–85% of spending, this module focuses on the remaining 15–17%: MSOCs. MSOCs include building-level budgets (e.g., copier leases and supplies, speakers, office and art supplies, graduation items, furniture), program/department budgets (e.g., extracurriculars, curriculum, grants, transportation, food service, operations), and districtwide expenditures (e.g., utilities, audit, legal, insurance, elections, HR). Building budgets are commonly allocated on a per-pupil basis, and districts should decide whether unspent funds may carry over and how student fees are set during the budget process.<br /><br />For program/department and districtwide budgeting, the guidance stresses identifying covered costs, comparing prior-year and 3–5 year historical trends, accounting for program changes and new initiatives, and budgeting line-by-line for major items such as technology, equipment/vehicles, maintenance/repairs, and rising purchased service costs.<br /><br />Grant budgeting should start with calculating grant revenues, then confirming staffing commitments, and using remaining funds for MSOCs that are necessary, reasonable, and allowable under the award requirements; any MSOC costs beyond available grant funding may require other funding sources.<br /><br />The document also notes a required MSOC disclosure (since 2016–17) comparing state MSOC allocations to budgeted MSOC spending, and recommends budgeting contingencies/reserves for unplanned grants, enrollment changes, or program needs to help avoid budget extensions.

Keywords

school district budgeting

expenditures and appropriations

Materials Supplies and Operating Costs (MSOCs)

NCES object codes

program activity location reporting

building-level per-pupil allocations

carryover of unspent funds

purchased services and utilities costs

grant budgeting allowable MSOCs

MSOC disclosure and contingency reserves