Friendswood ISD adopted general fund operating expenditures for the 2008-2009 school year in the amount of $38,224,453. The state requires school districts to follow the Financial Accountability System Resource Guide when classifying these expenditures.
The five major object categories are: payroll costs, professional and contracted services, supplies and materials, other operating costs, and capital outlay.
PAYROLL COSTS
Payroll costs account for over 85 percent of total general operating fund expenditures in Friendswood ISD. This major classification consists of the gross salaries or wages and benefit costs for employee services. This includes pay for teachers, other professional personnel, support personnel, substitutes, and employee benefits paid by the employee as well as benefits contributed by the district.
As a whole, the payroll classification increased expenses by less than 4 percent from the 2007-2008 year compared to the 2008-2009 year.
In 2008-2009 the Board of Trustees approved a 3 percent salary adjustment for all employees to cover cost of living and inflation increases. This expense combined with a limited number of new faculty and staff positions account for the increases in expenditures.
PROFESSIONAL AND CONTRACTED SERVICES
This major account classification is used to record expenditure for services rendered to the school district by firms, individuals and other organizations. Approximately 8 percent of the district’s total operating expenses are spent on professional or contracted services. The single largest expenditure of the professional and contracted services category is the cost for utilities to operate the district campuses and buildings.
Although FISD has made huge strides to reduce these costs and become more efficient energy users, utilities account for 50 percent of the total professional and contracted services expenditures.
Other expenditures in this category are audit fees, legal fees, contracted services for students with special needs, and professional services for staff development and training.
SUPPLIES AND MATERIALS
Supplies and materials are essential to the success of our students, faculty, and staff. Approximately 4 percent of the general operating budget is dedicated to equipping our students and employees with the supplies needed to be successful.
These expenses include supplies for maintenance and operations, textbooks and other reading materials, testing materials, and general supplies. Supplies for maintenance and operations include expenses to maintain and/or operate furniture, computers, equipment, vehicles, grounds and facilities of the district.
Included in this category, accounting for over 16 percent of the expenditures, are the costs for the fuel needed to allow district buses to safely transport students to and from school each day.
The majority of the dollars spent on supplies and materials, however, are spent on general supplies for employees and students. General supplies are those items needed to operate on a daily basis. Some examples of these supplies would be pens, pencils, paper, art supplies, physical education supplies, desks and small furniture items, and computers.
When comparing this major account classification expenditures from 2007-2008 to 2008-2009, there is a decrease in expenses. This decrease is part of FISD’s efforts to function more efficiently and to work within the means of the limited revenues under the new state funding system.
OTHER OPERATING COSTS
Employee and student travel, insurance and bonding costs, election costs, and other miscellaneous operating costs make up the other operating costs major account classification. This group of expenditures accounts for only 3 percent of the total FISD operating budget.
Almost 65 percent of operating costs are spent on insurance and bonding for the district. Insurance costs include property, casualty, and flood insurance policies for the district. Employee travel are expenses such as mileage, hotel and registration fees associated with employee conferences or training.
Friendswood ISD students excel in many academic and athletic areas. The costs associated with traveling to the locations, registering for the events, and feeding meals to the children competing in events are categorized as student travel.
Other operating costs increased by less than one percent from the 2007-2008 to the 2008-2009 year.
CAPITAL OUTLAY
This classification of expenses is reserved for those purchases which must be tracked in the district as a capital asset. Capital assets are typically defined as items having a per-unit cost of 5,000 dollars or more and a useful life of more than one year.
Land purchase and improvement, building purchases and improvements, vehicles, and large furniture and equipment items are all considered to be capital outlay expenditures.
Less than one percent of the general operating budget is designated for these types of expenditures.
SUMMARY OF EXPENSES
Although there are many expenses associated with operating a school district, it is clear that payroll expenses make up the majority of obligations for Friendswood ISD.
Analysis is done on an annual basis to ensure the staffing ratios are adequate and also to prevent keeping positions in the district that may no longer be needed due to changes in student needs or enrollment.
FISD has been recognized as one of the top five most efficient school districts in the state of Texas. The continued dedication by all employees to spend tax payer dollars in the most efficient and effective way is just one way FISD is leading to achieve excellence.
This is the third in a series on GOOD CENTS: Finance in FISD. If you missed the first two articles, find them under archives at www.fisdk12.net |
