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Home > School Closing Information > Cost Analysis Report Instructions
SCHOOL CLOSING INFORMATIONCost Analysis Report Instructions:Pursuant to Chapter 26 Rules, Section 3 Paragraph A: "All costs shall be calculated from actual base year operating costs..." Base Year is defined as "the 2nd year prior to the allocation year". The base year is used because it is the most recent available audited financial data in the MEDMS system. If the school will be closed at the end of the 2011-12 school year, the financial data from the 2010-11 school year should be used for the cost analysis. Step 1: Download the Budget to Actual Report for the Base Year from MEDMS Financial Reports
Step 2: After saving the downloaded Budget to Actual Report in excel - Sort by Fund, Program, Function, Cost Center and then Object in order to get the accounts into the Budget Category Cost Centers needed for the analysis.
Step 3: Remove all but Fund 1000 expenditures - unless food service is in a different category, such as Fund 6000. The new total for the Actual Expended amounts should be the total for Column A in the "Cost Analysis Expenditure Detail Report". Step 4: Copy the "Actual Expended" amounts from the downloaded and sorted spreadsheet into Column A of the "Cost Analysis Expenditure Detail Template Spreadsheet". Column B and Column C should all be zeros and Column D should be a formula to calculate the savings of Col (B) - Col (C). The last column labeled "Notes" should be used to provide explanations of assumptions and positions which will be either eliminated or maintained. Calculations showing the Subtotal for each Budget Category should be entered into the spreadsheet. You may have to do some rearranging of the line items so the subtotals add up into the appropriate categories. You will also need to correct the sum and subtotal calculations to properly account for each line of your budget. Step 5: Download and print the SAU Average Teacher Salary report from the MEDMS Website - Rules require the use of the average elementary teacher salary in the district when calculating the savings of a terminated position; a copy of this document should be printed and attached as supporting data. Instructions: Go to the following website: https://www.medms.maine.gov/medms_public/ReportPortal/Portal.aspx?CurrentLocation=/Public+Reports Click on "Professional Staff"; Click "Average Salary of Instructional Staff"; Select Base Year for Report; Select Appropriate SAU; Click "Show Report" and Print the Report for your records.
Step 6: Determine method for calculating Average Elementary Teacher Benefits to be used when calculating the benefit savings of a terminated position; include back up documentation on how the average was determined. Step 7: Column A should be the District's Actual Expenditures for the Base Year and should match the last budget printout for the base year and reconcile with the audited financials exactly.
Step 8: Column B should be the Actual Expenditures for the School that is closing:
Step 9: Column C is the expenditures tha will continue even "IF" the school was closed for that year. This should not take into consideration changes that are current.
Step 10: Column D should be a formula that calculates what the savings would be if the school were closed in the base year. The calcuation subtracts the continuing costs in Column C from the actual costs in Column B to determine the amount to be saved. Step 11: Once the totals and subtotals have been verified on the "Cost Analysis Expenditure Detail Template Spreadsheet", you will need to transfer the "Subtotals" of each Budget Category from the spreadsheet to the Cost Analysis Summary spreadsheet including notes of positions being maintained or eliminated. (Click here for a Sample Cost Analsyis Summary Template) Notes regarding Cost Analsyis:
Please direct any questions to: Department of Education |
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