5 Financial Reporting Update Statewide SD/ESD Financial Reporting Summary is complete and on our website New Program Series Reports!
6 SDAAC Update Meeting Schedule June thru September, 2005 Subcommittee meetings October 28, 2005 December 9, 2005 January 27, 2006 (Locations to be determined) Suggested FY Projects?
7 School District Training Needs? Debt Service Fund Issues Federal Indirect Cost Rates School Financial Services Rules Status Conversion of sick leave on separation Leave Sharing Use of Lease & Rental Proceeds in GF QZAB’s ~$11 million from 2004 & 2005 Allocations
8 Financial System Review Project ~$1.9 million upgrade VAX systems When will this happen… What we want them to know… What we want to know…
Shared Service Arrangements and Accounting Manual Updates for Fiscal Year Christie M. Hazlett Supervisor, School District & ESD Accounting
10 Shared Service Arrangements Chapter 1 Added Definitions Added Definitions Fiscal Agent: o An entity which has been empowered to handle fiscal matters for another entity, including disbursement of passing through of funds. This may include ensuring that the funds are used only for specific purposes defined by the grant or agreement. Sub-Recipient: o An entity that expends grants or other financial assistance received from a fiscal agent and/or pass-through entity.
11 Shared Service Arrangements Chapter 1 (Continued) Added Definitions Added Definitions Pass-Through Entity: o An entity that provides grants or other financial assistance received by a governmental entity to transfer to or spend on behalf of a secondary recipient or sub-recipient. Vendor/Contractor: o A contractor, dealer, distributor, merchant or other seller providing goods or services that is required of the conduct of a federal or state program. These goods or services may be for an organizations own use or for the use of beneficiaries of the federal or state program. (For example, an ESD or School District that provides a good or service to another ESD or School District would be considered a “vendor”.)
13 Fiscal Agent Journal Entries (Hand Out) Chapter 7 Section 9 – Shared Service Arrangements with Fiscal Agent Responsibilities Scenario 1 – Fiscal Agent as a Participating District Scenario 1 – Fiscal Agent as a Participating District Scenario 2 – Fiscal Agent as a Non-Participating District with Administrative Responsibilities Scenario 2 – Fiscal Agent as a Non-Participating District with Administrative Responsibilities Scenario 3 – Fiscal Agent as a Non-Participating District with No Administrative Responsibilities Scenario 3 – Fiscal Agent as a Non-Participating District with No Administrative Responsibilities Scenario 4 – Fiscal Agent as a Participating District with On Behalf Payments Scenario 4 – Fiscal Agent as a Participating District with On Behalf Payments
14 Accounting Manual Changes Edits and other changes Reorder of chapters in GAAP order Reorder of chapters in GAAP order General Fund ASB Fund Debt Service Fund Capital Projects Fund Transportation Vehicle Fund Fiduciary/Trust & Agency Funds Shared Service Arrangements Fiscal Agent journal entry examples
15 Accounting Manual Changes Chapter 3 - Revenue Recognition Added clarification of revenue recognition versus reimbursement of expenditures. Added clarification of revenue recognition versus reimbursement of expenditures.
17 Accounting Manual Changes Chapter 5 – Revenue Accounts Deleted Accounts Deleted Accounts 6177 – Eisenhower Professional Development 6377 – Eisenhower Professional Development Added Accounts Added Accounts 6162 – Math & Science Professional Development (NCLB Title II Part B). List of new revenue accounts – (see handout)
18 Accounting Manual Changes Chapter 5 Revenue Accounts (Continued)… Update Accounts Update Accounts 2700 – Rentals & Leases (Description, SHB 1995) Other updates as necessary for new revenues Titles and descriptions in several account numbers
19 Accounting Manual Changes Chapter 6 – Expenditure Accounts Deleted Deleted Program 77 – Eisenhower Professional Development Added Added Program 62 – Math & Science
20 Accounting Manual Changes Chapter 6 – Expenditure Accounts (Continued)… Updated Updated Activity 20 – Instruction (Description) Activity 24 – Guidance and Counseling (Description, includes homeless liaison work) Activity 25 – Pupil Management & Safety (Description, includes cell phones) Activity 61 – Supervision (Description, includes property managers and other clarifications) Activity 67 – Building & Property Security (Description, includes cell phones) Others
21 Accounting Manual Changes Chapter 7 – Journal Entries Updates done as needed based on previously mentioned changes Updates done as needed based on previously mentioned changes New Section on Fiscal Agent (talk about later) New Section on Fiscal Agent (talk about later)
22 Accounting Manual Changes Chapter 10 – Grant Management Financial Management of Grants section Financial Management of Grants section Added section that discusses that program grants may be more restrictive in the accounting for expenditures then the current version of the accounting manual allows
23 Accounting Manual Changes Appendix A Glossary of Terms Glossary of Terms Terms Deleted o Adult Basic Education o Expendable Trust Fund o Operating Transfer o Residual Equity Transfer Terms Added o Fiscal Agent o Pass-Through Entity o Sub-Recipient o Vendor
24 Accounting Manual Changes Appendix A – Glossary of Terms (Continued) Terms Updated Terms Updated Other Financing Sources Other Financing Uses Replacement Costs Food Services = School Food Services
25 Other Topics? Comments & Feedback! Questions?