Basis of Budgeting

The Windsor Southeast Supervisory Union (WSESU) and its member district's budgets are prepared and tracked according to Vermont Statutes and Agency of Education (AOE) Regulations, which is based on accounting for certain transactions, excluding encumbrances, on the basis of cash. Cash-basis reporting recognizes certain transactions when cash is received or disbursed. The most significant budgeted fund is the General Fund. WSESU utilizes an entity-based budgeting technique. The budgeting systems are designed to tightly control site/department budgets, and to provide flexibility for school sites and departmental management.

A modified accrual-basis is used when the financial statements are prepared at year-end at the fund level. This recognizes transactions when they become both measurable and available for use or collection within the reporting period. This allows the SU and the school districts to determine their financial position and results of operations by measuring financial resources and obligations at the earliest possible date and provides for comparable period-to-period reports. We maintain Permanent Funds, Enterprise Funds, Special Revenue Funds, as well as Private Purpose Trust Funds.

Accrual basis accounting is used to reflect the government-wide reporting for financial statements at year-end.

Board policy F20, Fiscal Management and General Financial Accountability (adopted September 28, 2026), requires WSESU's accounting and reporting to meet Generally Accepted Accounting Principles (GAAP) for state and local governments and to follow, at a minimum, the Agency of Education's chart of accounts (Handbook for Financial Accounting of Vermont School Systems). The year-end financial statements follow GAAP; where this book differs is the budget itself, which is adopted and tracked on the cash basis described above.

Budgets for the General, Enterprise, Capital Projects, and Debt Service Funds are adopted on a cash basis. Revenue and expenditures are reported quarterly on a cash basis.

The funds designated under the governmental-general funds category account for financial resources of the SU and the school district and are reported using the modified accrual basis of accounting which focuses on how monies flow into and out of those funds and the balances left at fiscal year-end for spending in future periods.

The funds designated under the governmental-special revenue funds category account for the proceeds of specific revenue sources (other than trusts or major capital projects) that are legally restricted to expenditure for specified purposes. Some examples of these types of funds are restricted state or federal grants. These grants are awarded to the SU with the purpose of accomplishing specific educational tasks.

The funds designated under the governmental-capital projects category at the local district level account for financial resources for acquisition or construction of major capital projects not being financed by proprietary or non-expendable trust funds. The most common source of capital project funding is the sale of bonds or other capital financing instruments.

The funds designated under the governmental-debt service category at the local district level account for the accumulation of resources, and the payment of long-term debt principal and interest.