Activity: Work with the site administrator responsible for the school discretionary

budget.
Description: I met with two administrators and discussed the discretionary budget. We
looked at how allocations are determined, and by whom. Both administrators also
described grant money, donations, the Title I budget etc. During our conversations, both
administrators also talked about her bookkeeping methods to assure the budget is
adequately maintained.
What did you learn from doing this project?
I already knew that budgeting money was an important piece to administration and
education. However, I dont think I fully understood the job that it requires. It is a very
difficult job, and I learned very quickly that I would need help. I will need to become
close friends with my school bookkeeper, and both of us will need to check each others
work when it comes to allocating and budgeting the money for our building. I also
learned to have a mentor, someone who has been an administrator for a while and who
understands the details of the budget. This will be the person I call for help when I have
a question regarding our budget. I also learned that it is okay to call central office and
ask questions. They would actually rather answer questions and make sure its right the
first time, instead of fixing all of the mistakes.
Given the chance to do it over, how would you do it better?
If I had the chance to learn more about the budget, and I hope I do, I would want to
actually sit down and be included in the process of creating the budget for the school
year. This doesnt mean be included on the decision making process during leadership
team meetings. I want to be included in the process of putting the budget into the correct
lines on the computer program. I want to be part of the process when the administrator
has to call upon the mentor or the central office for help, so that I can hear the
conversation, and am part of the outcome. Then I would like to be given a role in the
budget process. I think that if I have a small hands-on role, and I am monitored during

this role, I could be more effective when I am handed the full duty of creating the budget
for a particular school building.
This is the activity about the budget:
Budgeting and finance play a major role in the education field. The school board
must first create a budget for the district. Then each individual school looks at the
amount of money allocated for their school, and they must create a budget. This is a
tedious job; however, it must be done, and it must be done efficiently and effectively.
After all, this is where an individual school receives their support for educational
necessities such as instructional materials, consultants, etc. A budget is a blueprint. It is
a means of communicating to the public, parents, and staff what a district values
(Schilling and Tomal 2013). Therefore, the school board must set goals and standards for
schools to create their own budgets, and principals must abide by these goals and
standards.
In the Schilling and Tomal text (p.38), I found an interesting quote about
budgeting. This explains the exact purposes for an educational budget, as well as explains
that it should include all stakeholders in the process.
William Hartman, author of School District Budgeting (1999), defines education
budgeting as a working tool for the successful operations of states and local
school districts, and as a significant opportunity to plan the mission, improve
their operations, and achieve their education objectives. As such, the budgeting
process provides districts the opportunity to make better financial and program
decisions, improve operations, and enhance relations with citizens and other
stakeholders (National Advisory Council on State and Local Budgeting, 1995,
2).
I believe this explains an education budget very well. I especially liked that he says it is a
working tool. During my interview with two different elementary principals, they both
mentioned that the budget could require constant change. Therefore, it needs to be
revisited several times during the school year. Being on the leadership team has allowed

me to see exactly how to plan for the budget, and what it requires to make sure that the
appropriate money is allocated for the most appropriate areas presented on the budget
lines.
As mentioned, I have also interviewed two elementary principals in order to gain
more insight on the budgeting and finance task of an administrator. These interviews will
be further discussed, as well as attached in the appendix. Before sitting down with the
administrators, I reviewed a recent school budget, for my current school. I looked at the
different categories that are present, and noticed the money allocated for each category.
This budget was also one that had been revisited during the school year. Therefore, it had
some changes in different areas. After reviewing the budget, I set out to interview the
two administrators. I had a variety of questions to ask. I wanted to ask different
questions to warrant different answer from the interviewees. The questions and answers
were as follows:
1. How are allocations determined? Who decides how much money each
school receives? Administrator A responded with, Every district gets a
certain amount of money from the state (BEP). The districts then decide how
much individual schools get. This amount is based on student population in
the school or free and reduced lunch.
While researching on the Tennessee state website, I learned that student
enrollment (average daily membership-ADM) is the primary driver of funds generated by
BEP (Tennessee State Board of Education).
2. What can you tell me about sub-budgets, such as Title I, grant money,
donations, etc.? The administrator A responded with, Title I money is
federal money that comes from the Department of Education. It is based on

number of kids on free and reduced lunch in the district. This amount is
presented in tiers. They will look at the tiers of free and reduced lunch and
determine how much each school gets, per student. As far as grant money is
concerned, you can go after any grant you want as long as you dont have to
have matching funds, which then must have approval from school board (and
may not get). However, not all grants require matching funds. Grant money
has to be used for only what it is designated for.
3. What are your roles in the bookkeeping process to assure that the budget
is adequately maintained? Both administrators responded to this question,
and their answers were similar. Administrator A: One day a week, the
bookkeeper runs a report. The report lists all the accounts and available
money. It breaks down the budget into sections (i.e. general, instructional).
Then, I also receive a breakdown of restricted accounts. I review this reports,
and if something needs adjusting, I will notify the leadership committee and
we will have a brief discussion on what should be done. Administrator B: I
check the monthly statement, meet with the bookkeeper, and sign that we have
gone over the expenditures. The bookkeeper also provides a print-out of the
monthly report reflecting how money is allocated and the remaining balance.
From their responses, I understand that the bookkeepers main role is to monitor
the accounts and the budget. He or she also notifies the administrator weekly or monthly
with a report on the expenditures thus far. As the administrator, it is important to
examine these reports, and look for areas that need attention.
4. Once the money amount is determined for your school, how do you
determine where and how to spend the money? How do you involve the

staff in the budget process? Both of the administrators responded to this

question. I have been on the leadership team for the last several years;
therefore, I knew a little bit about this answer already. Administrator A: The
Leadership committee meets and decides how to allocate the money. We do
this by following board policy and financial procedures. Administrator B: I
schedule a meeting with the leadership team, which consists of a
representative from every department of the school staff. Each department
has a voice and can assist in the decision making process on how school funds
are distributed.
Something that I noticed about these interviews is that neither of the
administrators mentioned that they allocate money to different areas based on student
data. I know each of the administrators well enough to know that they both do this;
however, it wasnt mentioned. During my reading, I noticed that this was a priority.
Schilling and Tomal (p. 63) mentioned that a budget should reflect the priorities of the
community and address the needs of students, and also that funds should be allocated to
reflect the goals, objectives, and outcomes desired by the school district (Schilling and
Tomal 2013).
5. Who approves the purchases for the regular budget and the Title I
budget? Administrator A responded on this question. The Principal approves
the purchases for the regular budget. The Director of Federal Funding
approves the Title I budget. This was also found on the district website,
under the board policy. Each principal shall submit to the director of schools
at the end of each calendar month on a prescribed form the receipts,

expenditures and cash balance of all accounts under his jurisdiction. These
reports shall be made available to the Board at its request (HCDE Board
Policy).
6. How are requests prioritized when expenditures exceed budget
allocations? Administrator A responded with, Title I doesnt allow you to go
over your budget. BEP will allow you to use the money as long and you have
the money in your account to write the check. Once again, the bookkeeper
lets the principal know what your amounts are, and if you are close to your
allotted amount. Central office doesnt ask much unless you are in the red.
This administrator also mentioned that it is important to notice the cause for
expenditures exceeding the allocations, and make adjustments for next year.
Administrator B responded with, Requests are prioritized by instructional
needs for quality student instruction. This is where this administrator
mentions that it is important to consider needs of the students.
7. How do you manage the schools activity fund and monitor fund-raising
and financial resources of outside/booster groups? Administrator B
responded with, Through the monthly report provided by the bookkeeper,
followed by a collaborative conversation with the bookkeeper and school
secretary. I believe that this question is geared more towards middle and
high school because they have more fund-raising type activities, as well as
activity funds. This will be a topic of interest when I interview a high school
principal.
8. What are some of your frustrations when it comes to budgeting and
finance? Administrator B responded to this question, stating, A frustration

is the lack of money provided and the restrictions on how the money can be
utilized.
As mentioned before, there are certain things that an administrator must go
through in order to spend money. They must have enough money in the budget, they
must discuss this with the director, and the school board must review the request, etc. I
can see this as being a frustration, especially when you are certain that the request is for
the advantage of the students. I have also observed, in recent years, where schools will
have their budgets cut a substantial amount from the previous year. This can be very
frustrating, especially if the school leadership team and administrator have worked
together to create a plan for the following school year, in order to meet the needs of
students.
9. How could you improve the budget planning process, if given the chance
to? Administrator B responded to this question, stating, I would create a
more collaborative approach within the district to determine more effective
ways money could be available for funding of the schools needs.
Upon completion of the interviews, as well as the research that I have done, I
understand more about budgeting and finance from the administrators perspective. I have
learned several things throughout this process. I learned where the money comes from,
who allocated the money, how the money is allocated, administrators must be very
careful and monitor the school budget often, funds should be determined by student
needs, all stakeholders should be involved, etc. I can see that this part of the job could be
a very stressful part. Therefore, as a future administrator, my plans are to continue to
read about this process, pay close attention during budget meetings in our school, and

create a relationship with administrators who are effective with budgeting and finance.
From here, I create an idea about how an effective budget looks, as well as have a support
system to help me through the process during my first couple of years.

Appendix A
Administrator A
Budget and Financing Questions
1. How are allocations determined? Who decides how much money each school
receives? Every district gets a certain amount of money from the state (BEP).
Districts decide how much everyone gets. This is based on population or free and
reduced lunch.

2. What can you tell me about sub-budgets, such as Title I, grant money,
donations, etc.? Title I money is federal money that comes from DOE, and is
based on number of kids on free and reduced lunch in the district. This amount is
presented in tiers. They will look at the tiers of free and reduced lunch and
determine how much each school gets. Per kid (maybe $452).
Grant money-Go after any grant you want as long as you dont have to have
matching funds. Not all grants require matching funds. They must have approval
from school board (and may not get). Grant money has to be used for only what it
is designated for.
3. What are your roles in the bookkeeping process to assure that the budget is
adequately maintained? One day a week the bookkeeper gives me a report that lists
all the accounts and available money. There is a break down for each section
(general, instructional). I also receive a breakdown of restricted accounts.
4. Once the money amount is determined for your school, how do you
determine where and how to spend the money? The Leadership Committee
meets and decides how to allocate the money. We follow board policy and
financial procedures.
5. Who approves the purchases for the regular budget and the Title I budget?
The Principal approves the purchases for the regular budget. The Director of
Federal Funding approves for the Title I budget-Preston Gunter6. What is done if you need more money? Or if you go over the amount
budgeted for one area? How are requests prioritized when expenditures
exceed budget allocations? (I.e. you have budgeted $1,500 for copier expenses.
You go over this amount. What is done)? There is no option for more money.
With BEP-sometimes you can talk to the director if you really need something.
As far as Title I money is concerned-you cant go over budget. They have been
known, when schools have made major mistakes to go in and help out. The
system used to be where you could pull from to another section, but only during
amendment time. Overall, as long as we have the money to write the check we
are fine. Bookkeeper lets the principal know that you are going overCentral
office doesnt ask much unless you are in the red. It is important that during the
next year you make adjustments-figure out why you went over.
Appendix B
Administrator B
School Budget and Finance
1. How do you involve the staff in the budget process?
I schedule a meeting with the leadership team, which consist of a representative from
every department of the school staff, so each department has a voice and can assist in the
decision making process on how school funds are distributed.

2. How are requests prioritized when expenditures exceed budget allocations?

Requests are prioritized by instructional needs for quality student instruction.
3. What is the extent of your involvement in the budget and financing role (maybe
compared to the bookkeeper's)?
I check the monthly statement, meet with the bookkeeper, and sign that we have gone
over the expenditures. The bookkeeper also provides a printout of the monthly report
reflecting how money is allocated and the remaining balances.
4. What are some of your frustrations when it comes to budgeting and finance?
One frustration is the lack of money provided and the restrictions on how the money can
be utilized.
5. How would you improve the budget planning process, if given the chance to?
A more collaborative approach within the district to determine more effective ways
money could be available for funding of the schools needs.
6. How do you manage the schools activity fund and monitor fund-raising and
financial resources of outside/booster groups?
Through the monthly report provided by the bookkeeper, followed by a collaborative
conversation with the bookkeeper and school secretary.
7. Is there any other piece of advice or information you would like to add about the
process/importance of budgeting and finance?
Careful monitoring and understanding of how schools funds can be allocated is very
important for the building Principal. Any questionable activity must be reviewed
immediately. If not, school finance and mishandling of funds is at the top of the list for
grounds of dismissal from the school district.

References
Baker, Emily. Personal interview. 19 June 2014.
Financial Reports and Records (n.d.). In Hamilton county department of education
board policy handbook. Retrieved June 20, 2014, from http://www.hcde.org/

Johnson, Stacy. Personal interview. 16 June 2014.

Schilling, C. A., & Tomal, D. R. (2013). Resource management for school administrators
(pp. 38-63). Lanham, MD: Rowman and Littlefield Education.
The Basic Education Program (BEP) (2004-2013). In Tennessee state board of
education. Retrieved June 19, 2014, from
http://www.tn.gov/sbe/bep.shtml#General%20Overview