Section 6:
County Finance

A series of IMPACT leaflets were developed to assist the councils.  Please refer to:

IMPACT leaflet No. 7  Funding a County Extension Program

County Finance

Extension Council Responsibilities

University of Missouri Extension is a cooperatively funded venture involving local (county), University (state) and federal (USDA) partners. Generally, the state and federal portions fund salaries and benefits for professional and educational assistant staff; training costs; specific program support, including certain equipment purchases, and administrative costs.

Extension councils are responsible for funding the county extension center from local funds.

State statutes provide for the following roles and responsibilities of extension councils:

• Prepare an annual budget in cooperation with the county commissioners and University Extension prior to January 1. For first class counties, budget preparation is due prior to September 1.

• Arrange for and administer the county's share of the expenses of the local extension program.

• Set and arrange for the collection of fees for varied purposes, such as soil tests, resales, short course fees and others.

• Receive or acquire real or personal property and hold or sell such property.

• Accept contributions from private sources for use for extension purposes, such as grants and contracts, gifts and endowments.

A budget is developed to estimate expense and income needed to support delivery of programs and to determine fees for specific activities. A budget balances expenses and revenues.

1. A county budget is a summary statement including all revenues and offsetting expenses under the control of the council, regardless of the purposes for which they will be used.

2. A general operating budget is a statement of expenses and offsetting revenues required or available to support the core program, staff and center facilities. The GO budget reflects expenses from more than one account and revenues by source to cover these required and planned expenses only. The major revenue source for the GO budget is county appropriations.

3. Service and support budgets are auxiliary budgets developed for each account or activity anticipating income and estimating expenses to guide the establishment of fees.

The extension council, in consultation with the county program director and staff assigned to work in the county, should begin the budget preparation process in sufficient time to meet the required date for submission to the county commission. For first class counties, the deadline is September 1; for all other counties, the deadline is January 1.

Total Budget Needs

The major source of county extension funding is county appropriations. However, all counties have funding sources other than county tax dollars, such as grants, gifts and fees. The budget-building process needs to consider all sources of funding before finalizing the use of funds.

Funding Guidelines

University of Missouri Extension maintains funding guidelines for use by extension councils in planning for and securing needed local financial support. (See Exhibit 1 in this section.)

The budget planning process is aided by the use of a budget committee comprised of council members and the county program director. Many councils have found it advantageous to use council officers, including the treasurer and chair for this purpose.

Multiyear Planning

University of Missouri Extension provides information and formats to assist councils in developing and maintaining multiyear budget projections. Multiyear plans assist in communicating future financial needs, without the urgency of the annual budget preparation and submission process. (See Exhibit 2 in this section.)

Budget Planning

The county extension budget is a program plan in financial terms showing the manner in which the extension program is to be pursued and supported. This important process should consider the following items and sources of information:

1. County program plan;

2. Multiyear financial plan;

3. Special program needs;

4. Building and equipment needs;

5. Staffing (specialists, education assistants and clerical);

6. University of Missouri Extension funding guidelines;

7. County's financial situation; and

8. Current financial statements.

Goals and Objectives

Long-term goals and objectives should be considered along with immediate needs. The committee might feel it advisable to involve others in deliberations, such as 4-H councils, Missouri Association for Family and Community Education (MAFCE) councils, farm organizations, county commissions, chambers of commerce, and related organizations and agencies. These other sources can advise the committee of conditions and program needs in the county. Such discussions and deliberations need to take place prior to deciding on budget amounts.

At the appropriate time, the council or budget committee chairman should ask the county program director to present to the committee a budget format reflecting current annual budget year figures, current income and expense figures, and information on previous years.

Before proceeding further with the budget request, every member of the budget committee should become thoroughly familiar with these figures, what they represent and how they were developed. The budget committee should then prepare the "proposed budget" recommendation.

The budget request is built line by line. For example: What salaries are proposed for the clerical staff in the county office? What salaries are being proposed for comparable positions in other county government offices? Are postage rates scheduled to increase? Are mileage allowances going to increase? All these needs must be considered. (See Exhibit 3 in this section.)

Full Council Approval

After the committee is satisfied with its recommendation, it should present the budget to the full council at a regular meeting. The public could be given copies of the recommendation and invited to comment. The budget committee should be prepared to explain its recommendations before the full council and staff. The budget request must reflect the needs of people in the county and the finances that are available.

After an opportunity for input, discussion and possible amendments, the council should adopt the final "budget request", at which time it becomes the council's budget for presentation to the county commission. (See Exhibit 4 in this section.)

County Commission

The budget committee should recommend who should make the formal presentation of the budget request to the county commission. However, the presenter must be totally familiar with the budget request and extension programs in the county. This individual should be well known to the commissioners and someone in whom they have confidence.

The budget may need to be adjusted after action by the commission. If so, the budget committee should prepare a revised budget and present it to the full council for action.

Accounting for Expenditures

It is the council's responsibility to administer the local funds for the extension program in the county, including county appropriations and all other sources of revenues.

University of Missouri Extension provides and maintains a financial record-keeping system (computer- assisted or manual). The council treasurer, CPD and bookkeeper or secretary work together to initiate, record and report all financial transactions as approved by the council. The accounting manual and computer software are maintained in each office.

Annual Financial Report

Report of the past year's financial transactions is a required portion of the annual report to the county commission. This report is also helpful in planning each subsequent year's budget. (See Exhibit 5 in this section.)

Funding Extension work is a cooperative venture of federal, state and county governments, as stated in both federal and state legislation.  The following information is to assist county extension councils in planning for and securing needed financial support.  The sample of a summary table (Exhibit 1) should also provide assistance. The table identifies "minimum" and "target" amounts of funding for various numbers (FTE) of professional positions to be headquartered in a given county.  (An updated summary table is sent to Regional Directors each year -- please consult your County Program Director or Regional Director for the latest summary table.)  Also noted is the recognized cost of support education assistant positions.  In the final analysis, the fiscal objective must be to secure support, whether actual cash or in-kind, to allow staff to function at maximum effectiveness.

Cost Category and Criteria

1. Clerical support
   
   Effective operation of a county university extension center and support for professional field faculty and education assistants requires access to support staff proficient in receptionist, secretarial, bookkeeping and office management skills. County extension centers where two or less professional staff are officed require, at a minimum, one full-time clerical position. Where three or more professional staff are officed, additional clerical support is required.  With the complexity of receptionist, secretarial, bookkeeping and office management functions to be performed, wage levels should be sufficient to retain staff in these positions over time.  Note that in preparing budgets, actual anticipated costs may vary greatly from either the minimum or target amounts based upon salary rates and benefits costs.  Councils are encouraged to make arrangements for medical and retirement benefit programs for office support staff.
   
   Temporary Clerical -- This item reflects the need for temporary clerical assistance to provide for vacation, sick leave and work overload periods.

2. Travel
   
   Represents funds to reimburse staff for the use of a personal vehicle for official business and business related meals.  It is recommended staff be reimbursed at the University approved rate (32.5 cents per mile in 1998).  These resources are to carry out programs associated with county plans of work.  The University of Missouri Extension system budget reimburses staff for participation in training, statewide committee work and other activities beyond the scope of county plans of work.

3. Communications
   
   Represents the cost of an office telephone system, toll service for communication among staff and postage costs for council activities and other mail usage not allowable as official mail.  Also includes council portion of cost for internet access services.

4. Supplies and Materials
   
   Represents basic office and educational supplies and materials necessary to developing and delivering extension programs. This should include subscriptions to subject matter periodicals and needed reference materials.

5. Equipment
   
   Represents the cost of regular maintenance, periodic replacement and insurance for council owned office and educational equipment. Note that University owned/inventoried equipment located in county offices is included in blanket insurance provided by UME.

6. Council Operations 
   
   Represents the cost of required surety bonds, equipment insurance, election expenses, meeting expenses and other items necessary to the effective functioning of the extension council must be supported.

7. Office Facilities
   
   County extension center offices and meeting facilities are generally provided as "in kind" by county government and thus are not part of most council operating budgets. If space is rented or owned, costs such as rent, janitorial service and utilities become part of the operating budget plan. Whether provided in kind, rented or owned, facilities arrangements should include maintenance, janitorial service, a private offices for each professional staff member, reception and secretarial work areas, and secure equipment and supplies storage areas. Facilities should be comparable to those occupied by other professionals in the community. Each extension center should include a furnished conference room, at least large enough to accommodate meetings of the extension council.

8. Multi-County staffing
   
   Essentially all professional staff have multi-county responsibilities.  This expectation was considered in developing these criteria and should be considered by extension councils when developing budget plans.

Exhibit 1

SAMPLE
University Extension
County Extension Council Funding Guidelines
for     20??    

Exhibit 2

______________________________ COUNTY                         DATE: ____________________________

COUNCIL BUDGET BUILDING - FINANCIAL PLAN

Account:    General Operating

Exhibit 3

________________________ COUNTY

COUNCIL BUDGET BUILDING - WORKSHEET
                                                     General Operations

Exhibit 4

___________________________ COUNTY                 DATE: ________________
COUNCIL BUDGET WORKSHEET - GENERAL OPERATING SUMMARY

Exhibit 5

UNIVERSITY OF MISSOURI EXTENSION
County Extension Council
Annual Financial Report
Year Ending ________

REVENUES:

Beginning Balance
Student Fees
Appropriations
Investment Income
Gifts, Grants/Contracts
Resales/Education Service Fees
Other

TOTAL REVENUES

 

EXPENSES:

Salaries & Wages
Staff Benefits

Travel
Communications
Space Rent/Utilities
Supplies/Services
Repairs/Maintenance
Equipment Purchases
Other

TOTAL OPERATING COSTS

TOTAL EXPENSES

This is to certify that the above is a true statement of revenue available and expenditures from local sources in conducting programs during the year.

Signed:__________________________________________        Date: _________________________
Chairperson,  _ _ _ _ _ _ _ _ _ _ _ _ _ _  County
University of Missouri Extension Council

UM-UE 41 (11-90)

University of Missouri Extension
Staffing and Funding for the '90s

The action plan, "Staffing and Funding for the '90s," reemphasizes the importance of the federal, university and county government partnership in providing financial support for extension work. Identify "minimum" and "target" amounts of funding for various numbers of positions to be headquartered in a county. It is important to note that these amounts must change over time in recognition of factors such as increasing wages and the general rate of inflation. In the final analysis, the fiscal objective must be to secure support, whether actual cash or in-kind, to allow staff to function at maximum effectiveness.

Cost Category and Criteria

1. Clerical support -- Effective operation of a county University of Missouri Extension center and support for professional field faculty and education assistants requires support staff with receptionist, secretarial, bookkeeping and computer skills. County extension centers where two or fewer professional staff are officed require, at a minimum, one full-time clerical position. Where three or more professional staff are officed, additional clerical support is required.

2. Temporary clerical -- For purpose of fiscal planning, it is assumed that temporary clerical assistance of three weeks per year is needed to provide vacation and sick leave for each full-time clerical employee.

3. Travel -- Funds should be budgeted to reimburse professional staff for the use of a personal vehicle for official business at the university-approved rate per mile and also for business-related meals. These resources are provided to carry out programs associated with the county plans of work. The university reimburses staff for participation in in-service education, statewide committee work and other activities beyond the scope of the county plan of work.

4. Communications -- Each office must have a telephone system adequate for both incoming calls from the public and for toll service for communication among staff. Postage for council activities must be funded.

5. Supplies and materials -- Basic office and educational supplies and materials necessary to develop and deliver extension programs must be provided. Subscriptions to subject- matter periodicals and reference materials should be included.

6. Equipment -- Regular maintenance and periodic replacement of office and audiovisual equipment should be budgeted.

7. Council operations -- The cost of required surety bonds, equipment insurance, election expenses, meeting expenses and other items necessary to the effective functioning of the extension council must be supported.

8. Office facilities -- County University of Missouri Extension center offices and meeting facilities are generally provided as "in kind" by county government, so they are not part of most council operating budgets. If space is rented or other direct costs (janitorial, utilities, etc.) are incurred these costs must be added to the regular operating budget plan. Whether provided "in kind" or rented, facilities arrangements should include maintenance, janitorial service, a private office for each professional staff member, reception and secretarial work areas, and secure equipment and supplies storage areas. Facilities should be comparable to those occupied by other professionals in the community. In addition, each extension center should include a furnished conference room at least large enough to accommodate meetings of the extension council.

9. Multi-county staffing -- Generally, all professional staff assignments require work on a multi-county basis. This expectation was considered in developing these criteria and should be considered by extension councils when developing budget plans.

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		Tony DeLong, delongt@missouri.edu County Council Coordinator Last modified: September 22, 2004