Budget Badge #10 - Monitoring the Budget-Budget Badge #10

Budget Badge #10 - PowerPoint

Pdf Summary

This document explains how Washington school districts should monitor an approved budget throughout the fiscal year (WASBO Budget Badge #10). Because budgets are not static, districts should review budget-to-actual results monthly for each fund, department, building, and grant, using a monthly budget status report that is shared with the school board and includes explanations for significant deviations (WAC 392-123-115).<br /><br />Key monitoring practices include tracking monthly and year-to-date (YTD) revenues and expenditures, projecting year-end (“annualized”) results, and noting one-time or exceptional items (e.g., Safety Net, State Forest, grant reimbursements, stipends, PD days, large contracts). Districts should also monitor encumbrances (commitments to pay, often payroll and purchase orders) to understand true available budget and avoid surprises. Reviewing spending percentages by program helps identify areas that are over budget and prompts investigation into drivers such as staffing changes, higher benefits, overtime/stipends, or MSOC (materials, supplies, and operating costs) increases.<br /><br />The document highlights state apportionment timing: early-year payments are based on estimated enrollment; beginning in January, payments adjust to annual average FTE, which can reduce revenue if enrollment is below budget (RCW 28A.510.250). Fund balance projections should be reviewed against budget and any board minimum-fund-balance policy, ensuring sufficient cash flow during low apportionment months.<br /><br />It also emphasizes the value of monthly reviews with budget owners to build understanding, spot trends, verify correct coding, manage encumbrances (e.g., closing POs), and support grant compliance. Accounting systems and district procedures can strengthen control through requisition approvals, budget blockers, encumbrance accounting, purchase order/contract change rules, invoice approval workflows (including 3-way match), and related board policies.<br /><br />Finally, it explains budget extensions: if any fund will exceed total appropriations approved in the F-195—even by $1—the board must approve a resolution and submit an OSPI F-200 budget extension in EDS by August 31 (WAC 392-123-071/-072).

Keywords

Washington school district budget monitoring

WASBO Budget Badge #10

monthly budget-to-actual reporting

WAC 392-123-115 budget status report

fund department building grant tracking

year-to-date revenue and expenditure analysis

encumbrance accounting and purchase orders

state apportionment timing and FTE enrollment adjustments

fund balance projection and cash flow policy

OSPI F-200 budget extension and F-195 appropriations