BOCES ADMINISTRATIVE HANDBOOK 3

 

GENERAL REQUIREMENTS

FOR THE ADMINISTRATIVE AND

THE CAPITAL BUDGETS

 

The State Education Department

Office of District Superintendents and BOCES

2002

TABLE OF CONTENTS

I. ADMINISTRATIVE BUDGET 

    A. District Superintendent's Office
    B. General Costs of Administration
    C. Expenses of the Board
    D. Needs Assessments and Planning
    E. Central Support for Operations 
    F. Allocation of Costs - Administration  
    G. Vote 
II. CAPITAL BUDGET 

           A. Costs for Facilities 

III. ALLOCATION OF COSTS - SERVICES 

IV. APPORTIONMENT OF SURPLUSES AND ASSESSMENTS FOR SERVICES 

V. OTHER POLICY CONSIDERATIONS 

APPENDIX

           A. Provisions of Law and Regulations of the Commissioner of Education 8

 

INTRODUCTION

In the development and operation of Boards of Cooperative Educational Services, one of the primary objectives has been to maintain enough flexibility so that (1) the wide range of needs and conditions across the State could be accommodated and (2) newly identified needs of school districts could be faced promptly with effective action.

Boards of Cooperative Educational Services have developed to the point where this intermediate level of the elementary and secondary system has a significant impact on the program of service, the finances of component districts and the State. For purposes of strengthening the accountability of responsible parties, more accurate reporting, and planning for future development, it is essential that common definitions be adopted and uniform data be made available for all Boards of Cooperative Educational Services.

These Guidelines include the details necessary to carry out the intent of Education Law and the Commissioner's Regulations (see Appendix I). In addition, two other issues requiring interpretation and definition are included: Allocation of Costs of Services and Apportionment of Surpluses and Assessments for Services. Finally, there are policy statements covering inclusion of certain expenditures in the Administrative Budget and the Capital Budget.

The emphasis in these Guidelines is directed toward explaining the intent of the statute or regulations, with the expectation that such interpretation can be applicable to varying situations which may be encountered.

Forms are distributed annually to implement these Guidelines. Although it may be necessary to make adjustments in the budget and reporting format from time to time, the interpretations and intent included in these Guidelines may continue to be appropriate indefinitely.

I. ADMINISTRATIVE BUDGET

See Education Law (1950)(4)(b)
Commissioner's Regulations 170.3(b)

Each component district is responsible for a proportionate share of costs included in the administrative budget, regardless of its participation in the elective services that it may request. The recognition that these charges are mandatory, based upon a decision by the BOCES board, carries with it the responsibility for

bullet prior disclosure of the details,
bullet prudence in the process of development, and
bullet adequate reporting of administrative budget matters
The maintenance of confidence and support in the Board of Cooperative Educational Services requires these levels of information to components and to the State regardless of the legal authority for unilateral action.

For purposes of definition, the administrative budget is described here in terms of the activities which may properly be included. The budget document prescribed for filing follows this format so that accounting system requirements and other considerations will be met. Activities not delineated here should not be included without prior approval, as indicated below. Generally, it is the intent that in any instance where an appropriation or a portion thereof can be directly allocated to a service which districts elect to request, that expense should be included in the budget of that service. The exceptions are those specifically mentioned in the statute and identified below.

A. District Superintendent's Office

The District Superintendent fulfills a dual role as a State official and as the executive officer of the BOCES. The BOCES is expected to provide sufficient resources to supplement the existing State support so that there is adequate total support in accordance with local standards and expectations, and statute.

Items to be included -

Supplementary salary of the District Superintendent, clerical salaries directly assigned, travel expense, supplies, equipment and contractual expenses for the office operation.

B. General Costs of Administration

It is expected that general assistants to the District Superintendent (which may be designated under various titles such as deputy superintendent, assistant superintendent, administrative assistant) needed to support the District Superintendent in State duties, or responsible for general regulation, direction and control of the service program, together with clerical support, will be included.

The costs of benefits related to salaries allocated to the administrative budget, operation, maintenance, and insurance on the administrative plant, communications for administration, and the total charge for supplemental retirement are to be included. Short term interest for operations should also be included.

A portion of the costs of liability insurance plus the reserve for deductibles (if any) is to be included. The amount will be determined by prorating the costs remaining after assigning the premium items specifically related to particular activities.

Activities related to cooperation with agencies such as county departments of Social Services and units of the Department of Mental Health should be included, as well as activities related to communicating with local agencies on behalf of the Education Department together with actions directly requested by the Commissioner.

Items to exclude -

The costs necessary to support any position responsible in whole or in part for the operation of a service which districts may elect to request shall be included in the budget of that service.

C. Expenses of the Board

Items such as costs for board meetings, travel, association dues, training institutes and association meetings; expenses for the clerk and officers of the board, legal fees, supplies, and fidelity bonds; annual and special meetings of trustees are to be included.

D. Needs Assessments and Planning

Items to be included -

The costs of personnel and supporting expenditures necessary to conduct surveys within and among BOCES service areas and the development of plans based on such needs assessments which indicate promise of enhanced educational services. The costs of professionals, clerical, staff supplies, equipment, travel, and other related items are to be included.

 Items to exclude -

Planning services to individual districts or groups of districts enabling assessment of district needs and designing of district programs should be included in the service budget.

Once a shared service, such as career and technical education, is initiated the costs of continued updating of the plan for that service should be included in the service budget. The costs for evaluating existing programs should be included in the service budget of the program.

E. Central Support for Operations 

Among the costs to be clearly stated in the administrative budget are the following:

Business Office Operations

These include accounting, purchasing, payroll, inventory control, bidding, and related costs for the BOCES.

Personnel Services

Negotiations, contract management, recruitment, and staff development for the BOCES.

Public Information

Development, printing, and distribution of newsletters, brochures, media material, and similar costs for the BOCES.

All costs of the above are to be fully reported in the administrative budget. Where purchase from a service budget is appropriate, the service budget will clearly identify the amounts and purposes for allocation to the administrative budget so that an accountable "crossover" will be clearly presented.

 F. Allocation of Costs - Administration

In accordance with the requirements of 170.3(b), Regulations of the Commissioner of Education, in any instance in which there is a sharing of personnel or functions between the administrative budget and the service budget, details of the allocations used in arriving at the amount to be included in the administrative budget must be filed with the Commissioner for approval. In preparation for the annual meeting presentation of the budget in April, such information must be filed with the Office of District Superintendents and BOCES no later than March 1 for approval. A paper or electronic form with procedures for filing is available from the Office of District Superintendents and BOCES.

Revenues for administrative charges from non-components either within the BOCES service area or from outside the BOCES shall be used as an offset in the administrative budget before the annual charges to components for administrative costs are calculated and adopted.

G. Vote

A vote on the BOCES administrative budget must take place at a regular or special meeting of the board of education of each component district to be held between April 16 and April 30 inclusive on a date designated by the President of the cooperative board.

II. CAPITAL BUDGET  

See Education Law (1950)(4)(b); (p); (t); (u) 
Commissioner's Regulations 170.3(c)

The capital budget includes facility construction and lease expenses authorized pursuant to paragraphs (b), (p), (t) and (u) of Section 1950 (4), as well as payments for indebtedness for capital projects, and payments for acquisition or construction of facilities, sites, or additions.

As with the administrative budget, the capital budget is a charge against all component districts and is allocated in the same manner as the administrative budget. There is no requirement for a vote, as in the administrative budget.

A. Costs for Facilities

Rentals - Agreements for securing facilities to house both administration and services shall be included.

Dormitory Authority Payments - The total of all payments to the Dormitory Authority shall be shown.

Fees - The total of any Bond Trustee or Dormitory Authority fee shall be included.

Transfers to Capital Fund - Once a referendum authorizing a construction project has been passed, it is permissible to make an annual appropriation during the course of construction. Such appropriation for transfer is not permissible, lacking a referendum.

The gross appropriation for facilities shall be shown in the budget. Revenues from non-components, either within the BOCES service area or from outside the BOCES, for use of facilities shall be used as an offset before the annual charges to components are calculated and adopted.

Charges for rentals or Dormitory Authority payments should not be included in a service budget. The revenue resulting from an allowance for housing in a program supported by any revenue other than from component districts, such as a grant award, shall be used as an offset.

 In accordance with established practice -

bullet Costs for operation and maintenance incurred by BOCES should be prorated between services and administration.
bullet

Activities or ancillary services not related to the housing obtained by rental shall be excluded from the rental consideration, and included in the service budget by a separate purchase agreement (example: attendance, health services, physical education instruction for special education classes).

bullet The costs of developing proposals leading to a referendum, including options, exploration, legal fees, advertising, and conducting the election are to be included. Following a successful referendum, they should be paid from the project so authorized.

III. ALLOCATION OF COSTS - SERVICES

See Education Law 1950(4)(d)(3)
Commissioner's Regulations 170.3(9)

A local uniform cost must be established for each service based on: anticipated participation in the ensuing year; participation in the current year; or a two or three year average including participation in the current year.

The unit cost shall be the same for all participating districts based on a uniform methodology approved annually by at least three-fourths of the participating districts, after consultation by local school officials with their respective boards of education.

Such local uniform cost shall be subject to final adjustment for programs for students with disabilities based on actual participation in accordance with the Commissioner's Regulations.

IV. APPORTIONMENT OF SURPLUSES AND ASSESSMENTS FOR SERVICES

See Appendix - Education Law 1950(4)(f)

The term "surpluses" means monies received for administrative, capital or service purposes, which at the end of the fiscal year are not expended or encumbered.

The term "assessments for services" means deficits or the amount of money required beyond that budgeted which is subsequently to be charged to the users of a service.

An advisory memorandum from the Office of Counsel includes the following analysis:
Surpluses and deficits must be allocated in the same way as the cost allocation in force for the year involved. 

It is clearly indicated that there must be an annual return of surpluses to users. Surpluses and assessments are to be accounted for by each service and the administrative and capital expenses, and prorated among the users on the basis of the original payments for each service and the administrative and capital expenses, annually. 

V. OTHER POLICY CONSIDERATIONS 

The following apply to assorted matters affecting the operation of BOCES.   

bullet Changes in Appropriation in the Administrative and Capital Budgets 
bullet The administrative budget may be decreased after adoption. Anticipated collections may be reduced or, if full amounts are collected, the surplus returned at the end of the year. 
bullet The administrative budget cannot be increased after adoption. 
bullet The capital budget can be decreased or increased after adoption. 

Accounting for Certain Assessments 

Costs of supplemental retirement benefits, health insurance for retirees, interest income and expenses, and most liability insurance are to be included in the administrative budget. 

Supplemental retirement benefits and health insurance for retirees are expenditures for staff who provided service in the past years. These costs are viewed as an obligation that is more appropriately attributed to the agency rather than current service users. 

Interest income and expense is assigned to the administrative budget because it would require unreasonable record keeping to attribute such costs to service programs. 

Liability insurance, although a protection against major exposure to liability generated by the operation of the various service programs, is a responsibility of the agency rather than the service programs because claims are against the agency as the corporate body rather than against the service program. 

Costs of amortization of an early retirement incentive (if elected) may be apportioned across administrative and service budgets on any basis which is consistent and equitable when the entire cost is to be paid in one year. If there are multi-year payments, the annual cost should be assigned to the administrative budget. 

APPENDIX I 

Provisions of Law and Regulations of the Commissioner of Education

  1. Administrative Budget
Education Law Section 1950 (4)(b)

 .Such program, capital and administrative budgets shall be separately delineated in accordance with the definition of program, capital and administrative costs which shall be promulgated by the Commissioner..

 Regulations of the Commissioner of Education 170.3 (b), (c), (d)

170.3 (b) The tentative administrative budget for the administrative costs of the board of cooperative educational services presented to the annual meeting shall be in a form and according to guidelines prescribed by the Commissioner of Education and shall include the appropriations for expenditures necessary to maintain the activities of the office of the district superintendent, for general costs of administration, for expenses of the board, for expenses of meetings of trustees and voters, for needs assessments and planning and for expenditures for central support of operations, including the salaries and benefits of supervisors and other central administrative personnel.

.A schedule showing the proration, between the tentative budget for the administrative costs and the tentative budget for the program costs, of salaries and other expenditures required to support those positions which are partially responsible for the administration of any approved services to districts and to support those expenditures for central support of operations, shall be filed in the prescribed form for approval of the Commissioner of Education prior to the inclusion of such appropriation in the tentative budget for the administrative costs of the board.

170.3 (c) The tentative budget for capital costs of the board of cooperative educational services presented to the annual meeting shall be in a form and according to the guidelines prescribed by the Commissioner of Education and shall include the appropriations for facilities, including expenditures for rentals, for payments to the Dormitory Authority, for transfers to the capital fund for construction purposes and for repayment of indebtedness related to capital projects. Appropriations in support of other facilities expense of the board may also be included upon prior written approval of the Commissioner.

170.3 (d) The tentative budget for the program costs of the board of cooperative educational services presented to the annual meeting shall be in a form and according to the guidelines prescribed by the Commissioner of Education and shall include all expenditures for programs or services requested by the component school districts and approved by the Commissioner of Education, not authorized or approved for inclusion within the tentative budget for the administrative costs of the board pursuant to subdivision (b) of this section, or in the tentative budget for capital costs of the board pursuant to subdivision (c) of this section.

 2. Allocation of Costs of Services

 Section 1950 (4) (d) (4)

.any component school district which does not elect to participate in any such specific cooperative services authorized under this paragraph shall not be required to pay any share of the moneys provided in the budget as salaries of teachers or other personnel employed in providing such service, for equipment and supplies for such service or for transportation of pupils to and from the place where such service is maintained. Provided, further, that a board of cooperative educational services may allocate the cost of such services to component school districts in accordance with terms agreed upon between such board and three-quarters of the boards of education and trustees of local school districts participating in the service.

3. Apportionment of Surpluses and Assessments for Services

Section 1950 (4) (f)

. and to apportion surpluses and assessments for services on the basis of participation to those components and to those school districts outside the board of cooperative educational services contracting for such programs, and to apportion surpluses and assessments for administrative expenses to all component districts. All such apportionments shall be made annually.