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Paul Stone Mike Dooley, CSBO Ramona Garner Daniel Lunghofer, MPA April 25, 2014 2014 Annual Conference1.

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Presentation on theme: "Paul Stone Mike Dooley, CSBO Ramona Garner Daniel Lunghofer, MPA April 25, 2014 2014 Annual Conference1."— Presentation transcript:

1 Paul Stone Mike Dooley, CSBO Ramona Garner Daniel Lunghofer, MPA April 25, Annual Conference1

2 Paul Stone School District Accounting Supervisor (360) Annual Conference2

3  A Second Addendum to Bulletin No is in process at OSPI. It will be available on the OSPI website when completed.  The State Auditors Office (SAO) changed their auditing practices.  GASB Statements 63 and 65 changed the GAAP standard layout for financial statements.  The conventional accounting practices for Deposit Arrangements with ESDs for Employee Compensated Absences have been radically modified Annual Conference3

4  Previously, SAO was able to provide an opinion on financial statements based solely on presentation in accordance with an Other Comprehensive Basis of Accounting (SDAM and F-196).  Only districts filing Comprehensive Annual Financial Report (CAFR) were audited to GAAP Annual Conference4

5  AICPA peer review of SAO auditing practices.  New SAO “dual-opinion” audits.  Financial Statements compared against two different standards. ◦ OCBOA presentation based on statutory guidance (SDAM and F-196.) ◦ GAAP presentation based on governmental accounting standards Annual Conference5

6  Timing impact: As GASB Standards become effective, the SAO audits to the new rules.  Guidance originally prepared for inclusion in the SDAM for the 2014–15 fiscal year has been moved up and becomes effective in the current fiscal year Annual Conference6

7  GASB Concepts Statement 4 introduced idea of “net position” and inflows/outflows of resources.  GASB Statements 63 and 65 changed the GAAP standard layout for financial statements as a result.  We are changing the balance sheet to conform to these new principles Annual Conference7

8 Inflows/Outflows of Resources  New focus is on the flows of resources: ◦ Inflows of resources: acquisition of net assets. ◦ Outflows of resources: consumption of net assets. ◦ Net assets: Assets over liabilities.  Additional focus on applicable period: ◦ If flow of resources applies to a future period, considered “Deferred Inflows/Outflows of Resources.” 2014 Annual Conference8

9 Deferred Revenue is no longer used. General Ledger Changes (2013–14)  GL 750: Unavailable Revenue.  GL 760: Unavailable Revenue—Taxes Receivable.  These are no longer considered liability accounts Annual Conference9

10 10

11 LIABILITIES Accounts Payable $ 440, Payroll Deductions and Taxes Payable $ 1, Due To Other Governmental Units $ 291, Estimated Employee Benefits Payable $ 1,620, Due To Other Funds $ 27, TOTAL LIABILITIES $ 2,381, DEFERRED INFLOWS OF RESOURCES Unavailable Revenue—Taxes Receivable $ 9,940, TOTAL DEFERRED INFLOWS OF RESOURCES $ 9,940, FUND BALANCE Nonspendable Fund Balance $ 400, Restricted Fund Balance $ 3,586, Committed Fund Balance $ 7,000, Assigned Fund Balance $ 17,799, Unassigned Fund Balance $ - TOTAL FUND BALANCE $ 28,786, TOTAL LIAB+DIR+FB $ 41,107, Annual Conference11

12 Fiduciary Fund: General Ledger Changes (2013–14)  GL 856: Held in Trust for Pensions and Other Employment Benefits. (PTF)  GL 857: Held in Trust for Private Purposes. (PPTF)  Fiduciary Fund year-end entries should close to these accounts.  Balances in GL 889 should be JV’d to the appropriate account Annual Conference12

13 Current F-196 Guidance in the ABFR New GASB 63 Standard Change in the Fund title: Statement of Fiduciary Net Assets Statement of Fiduciary Net Position Change in the description of the title for the Fund Balance: NET ASSETSNET POSITION Change in the specific GL Fund Balance trust account: Assigned to Fund PurposesHELD IN TRUST FOR (reason) Change in the description of the total Fund Balance: TOTAL NET ASSETSTOTAL NET POSITION Change in the title for the Statement of Changes: Statement of Changes in Fiduciary Net Assets Statement of Changes in Fiduciary Net Position Change in description of Beginning Net: Net Assets—BeginningNet Position—Beginning Change in description of Ending Net: Net Assets—EndingNet Position—Ending 2014 Annual Conference13

14  Per GASB 10 and SAO: Deposit arrangements for compensated absences are not risk pools.  Assets held by the ESDs on behalf of the districts are still the property of the school districts and balances should be reported on financial statements.  The current practice of recording the periodic payments to the ESD as expenditures for compensated absences is not correct Annual Conference14

15  Guidance applies only to districts that are members of their ESD’s Compensated Absence Pool.  Periodic deposits are not considered expenditures because GAAP dictates there is no liability until you have a change in the current financial resources.  Under the current practice, employees have not taken sick leave, districts are setting aside funds in anticipation Annual Conference15

16 An adjusting entry is required to recognize the district’s pool balance as an asset as of August 31, Annual Conference Initial Recognition of Asset on Financial Statements General Ledger Account Sub- Ledger Acct code Account Title Applicable Fund DebitCredit 451 Investments/Cash with TrusteeGFXX 898 Prior Period RestatementGF XX Initial Entry: To record balance held by ESD for SD Compensated Absences. Recognize asset as a Prior Period Adjustment. 16

17  Current year adjusting entry required.  Periodic expenditures previously recorded should be credited. The debit is an increase in GL 451 Investment/Cash with Trustee Annual Conference Adjusting Entry for periodic expenditures previously recorded General Ledger Account Sub- Ledger Acct code Account Title Applicable Fund DebitCredit 451 Investments/Cash with TrusteeGFXX 530YExpenditures (Sick Leave Cashout)GF XX 17

18  New accounting procedure for future periodic payments for Compensated Absence amounts sent to the ESD and held in reserve Annual Conference Monthly payroll benefit assessments for Compensated Absences 451 Investments/Cash with Trustee GFXX 241 Warrants Outstanding GF XX Record the monthly Compensated Absence assessment as an increase in Investment/Cash with Trustee. Payments to ESDs. 18

19  Two distinct types of expenditure claims. ◦ Annual Compensated Absence buy-back elections. ◦ Compensated Absence cash-outs upon termination.  OMB Cost Circular A-87 does not allow termination payments for unused leave to be directly charged to Federal programs. These costs may only be indirectly charged to Federal programs.  Fringe benefit rates charged to federal programs are being questioned by SAO as unallowable. OSPI and the ESDs are working with SAO on this issue, stayed tuned Annual Conference19

20 2014 Annual Conference  Recognition of the expenditure occurs when there is a change in the current financial resources. 20 Recognition of the expense for Compensated Absence cash out or buy back 530 Y Expenditure (Compensated Absence Buyback/Cashout) GFXX 241 Warrants Outstanding GF XX To record the employee claim for compensated absences. Payment made to employee OR former employee. Termination payments for Compensated Absences can not be directly charged to Federal Programs.

21  The new procedure to record the reimbursement of funds from the ESD Annual Conference21 ESD reimburses District for the claim; this reduces Investment/Cash with Trustee. 240 CashGFXX 451 Investments/Cash with TrusteeGF XX To record reimbursement from ESD for Compensated Absence claim. This reduces the Investment/Cash with Trustee.

22  The district’s balance in the pool is reflected both as an asset, as well as in the appropriate GL account for the ending fund balance.  Use GL 888, Assigned to Other Purposes: if there is no formal action or language in the agreement.  Use GL 870, Committed for Other Purposes: for pool balances committed by formal Board action.  Use GL 831, Restricted for Compensated Absences: If the written agreement with the ESD explicitly states pool funds may only be used for compensated absences.  At this time, there is no evidence any pools are restricted Annual Conference22

23 2014 Annual Conference23 Year 1: YEAR END CLOSING ENTRY TO ADJUST ACCOUNTS. (Assigned assumption) 890 Unassigned Fund BalanceGFXX 888 Assigned to Other PurposesGF XX To recognize the Assigned, Compensated Absences Fund Balance. Corresponds to amount held in GL 451 for purpose. FY X+1 YEAR END CLOSING ENTRY TO ADJUST ACCOUNTS. (Assigned assumption) 890 Unassigned Fund BalanceGFXX 888 Assigned to Other PurposesGF XX To adjust Assigned Compensated Absences Fund Balance to actual amount recorded in GL 451, Investment/Cash with Trustee asset account.

24 New GL 660: Unearned Revenue. This account is for recording money that the district has received, but has not yet earned. It is a liability because receipt of the money is contingent upon the district performing some service. Example: a parent pre-pays full-day kindergarten tuition in August. The district records it as unearned revenue Annual Conference24

25 2014 Annual Conference25 Are we having fun yet?

26  The Accounting Manual is published cooperatively by OSPI and SAO.  The School District Accounting Advisory Committee (SDAAC) makes recommendations for updates to the manual in their role of advising on accounting, budgeting, financial reporting, and related matters.  SDAAC meetings are scheduled now through December 2014 for the Accounting Manual updates.  The SDAAC web page: ◦ ◦ Has the complete description of changes to the manual. ◦ Has meeting agendas, materials, list of committee members, etc Annual Conference26

27  New Program 03 Basic Education–Dropout Reengagement, has been added.  New Activity 33 Curriculum, has been added.  Inventory is allowable in the Capital Projects Fund (CPF).  We have revised to/from transportation accounting on the long form in Appendix E.  Audit Frequency and Reporting Levels of Audit Recommendations are new schedules included in the new edition Annual Conference27

28  New Program 03 Basic Education–Dropout Reengagement opened for 2014–15.  Program has same allowable activities, objects, and duty codes as Program 02.  Under ESSHB 1418, school districts must have an approved Dropout Reengagement Program to claim FTE for funding. Current list of eligible programs is on the OSPI website: Annual Conference28

29 New Activity 33 Curriculum  No current method for capturing curriculum costs (buried in Activity 27).  Legislature provides curriculum funding, no tracking of those funds.  Intended to capture the cost of developing and purchasing new curriculum.  Open in all programs except 97, 98, and Annual Conference29

30 New Activity 33 Curriculum (continued)  Includes the following: ◦ Textbooks. ◦ Electronic textbooks. ◦ Hands-on science kits. ◦ Sheet music. ◦ Workbooks in lieu of textbooks.  Does not include most consumable items (paper, science chemicals, etc.) Annual Conference30

31 Inventory in the Capital Projects Fund (CPF)  The way technology projects are implemented has prompted a change in the CPF account codes.  In 2014–15: ◦ GL 410 Inventory will be open in the CPF. ◦ GL 430 Prepaid Items will be closed in the CPF. ◦ GL 840 Nonspendable Fund Balance will be open in the CPF Annual Conference31

32 We have re-visited to/from transportation accounting in Appendix E.  The long form is now a two-part form: ◦ Part One: Calculates the per-mile rate the district should be using. ◦ Part Two: A separate piece allowing for the calculation of non-to/from trip costs. ◦ On Line 12: “Cost of Drivers including benefits”, excluding the cost of health benefits is allowable.  Health benefits are deemed a core cost of Program Annual Conference32

33 Audit Frequency The frequency with which a school district is audited by the State Auditor’s Office depends on the district size and the level of risk associated with the district. The following table outlines SAO’s audit frequency schedule for districts Annual Conference33 Local GovernmentStandard Frequency Accountability AuditsFinancial Audits School Districts FTE Students ≥ 8,000Annual FTE Students < 8,000Biennial/Triennial based on risk and user needs FTE Students < 100 or no high school Annual Audit AssessmentNone

34 Reporting Levels of Audit Recommendations  SAO utilizes the following three levels of reporting issues that arise during a financial audit: ◦ Findings formally address issues in an audit report. Districts are given the opportunity to respond to a finding, and this response, or a synopsis of it, will be published in the audit report. ◦ Management Letters communicate less significant issues of noncompliance and make recommendations for strengthening internal controls. Management letters are referenced, but are not included, in the audit report. ◦ Exit Items are less serious audit issues than a finding or management letter. These issues are informally communicated to a district Annual Conference34

35 2014 Annual Conference Michael J. (Mike) Dooley, CSBO Supervisor, School District and ESD Budgeting (360)

36 2014 Annual Conference  New items in the General Fund: ◦ In all programs, except 97, 98 and 99, new Activity 33 Curriculum was added.  Objects 0, 2, 3, 4, 5, 7, 8 and 9 are allowed.  With duty codes 001, 002, 003, 004, 005, 120, 121, 122, 130, 131, 132, 250, 251, 252, 310, 311, 312, 314, 320, 321, 322, 324, 330, 331, 332, 334, 400, 401, 402, 490, 491, 492, 494, 520, 521, 522, 610, 630 and 640 allowed in Object 2 certificated salaries, and  With duty codes 001, 002, 003, 004, 005, 900, 903, 940, 943, 960, 963, 970, 973, 980, 983, 990 and 993 allowed in Object 3 classified salaries. 36

37 2014 Annual Conference  New items in the General Fund: ◦ New Program 03 - Basic Education – Dropout Reengagement was added.  Allowable activities are the same as in Program 02.  Allowable objects are the same as in Program 02.  Allowable duty codes are the same as in Program 02. ◦ Under ESSHB 1418, districts must have an OSPI approved Dropout Reengagement Program to claim FTE for funding. 37

38 2014 Annual Conference  New items in the General Fund: ◦ New edit applies to school districts that have been approved by OSPI to claim for funding in programs under ESSHB 1418, that is Program 03: ◦ New edit applies to school districts that have not been approved by OSPI to claim for funding in programs under ESSHB 1418, that is Program 03: There are no expenditures in Program 03, but district has approved Dropout Reengagement Program Amount 1 = Mask 03XXX Applies to any district listed in edit Valid in F-195 and F-200 There are expenditures in Program 03, but district has no approved Dropout Reengagement Program Amount 1 = Mask 03XXX Applies to any district other than those listed in edit Valid in F-195 and F

39  One more (exciting) new item in the General Fund: ◦ New G.L. 831 Restricted for Employee Compensated Absence is open in both the beginning and ending fund balance sections.  New item in the Debt Service Fund: ◦ On page DS4 of the EDS input option, the application will now allow deletion of bond issue dates and amounts. Yeah!!!  New item in the Capitol Projects Fund: ◦ G.L. 840 Nonspendable Fund Balance – Inventory & Prepaid Items is now allowed in both the beginning and ending fund balance sections.  The term “Skills” Center has been changed to “Skill” Center on all screen and report displays Annual Conference39

40  Budgeted Beginning Fund Balance Review: ◦ OSPI will review each school district’s budgeted beginning fund balance after all the F-196 information is received. ◦ Current budgeted beginning fund balance will be recalculated based upon the prior year actual ending fund balance from the F196. ◦ If the re-calculated budgeted ending fund balance result is negative, your school district may receive a request from OSPI to revise its budget. ◦ Your school board will have 30 days of receiving notice to submit a revised budget to OSPI Annual Conference40

41  Budget Extension Reminders: ◦ All of you are busy preparing your new year budgets, but don't forget any remaining current year budget extensions. ◦ August is the final month to file your F-200 budget extensions with your ESD and OSPI. ◦ Depending on when you submitted your current year F-200 for approval and when you printed your new year F-195 budget document, you may need to reprint your new year budget to allow your current year budget extension to be accurately displayed in the middle column of your new year F Annual Conference41

42  Budget Extension Reminders: ◦ Review budget monthly to determine necessity of an extension. ◦ Must complete a budget extension prior to incurring expenditures in excess of the total appropriations as required by RCW 28A  For 1 st class school districts, adopted and filed prior to incurring expenditures that exceed the appropriation in each fund.  For 2 nd class school districts, adopted and approved by both the ESD and OSPI prior to incurring expenditures that exceed the appropriation in each fund.  The ESD and OSPI will adjust budget extensions that do not meet this requirement Annual Conference42

43  Budget Extension Reminders: ◦ WAC requires that the Associated Student Body initially review revisions to the Associated Student Body (ASB) budget. Therefore, an extension of the ASB Fund budget should occur prior to the closing of school to secure the necessary student involvement. ◦ Check your DSF appropriation for adequate spending level for your district’s debt payment schedule. ◦ Check your TVF appropriation for adequate spending level for those too-good-to-pass-up year end close-out bus deals Annual Conference43

44  F-197 Cash File Questions and Answers: ◦ Background  During the mid-1970s the State Legislature requested OSPI inquire into the matter of school district cash balance amounts and the factors that cause fluctuations, sometimes severe, in cash amounts throughout the school fiscal year.  Initially the data collected was as recorded by the respective county treasurers, and not the records of the district. As a result, differences were found and, for the purposes of these studies, data was revised and adjusted so as to be presented on the same comparable basis.  This brought about a need for a uniform reporting mechanism. Thus beginning in 1979 and through the early 1980s all data for cash flow analysis done by OSPI for legislative reports was taken from the cash file, what we today refer to as the F Annual Conference44

45  F-197 Cash File Questions and Answers: ◦ What is the purpose of the F-197?  Monthly data collection mechanism required of educational service districts (ESD) by OSPI and used periodically by School Apportionment and Financial Services (SAFS) to gather select school district financial data – such as net cash, investments, and local deductible revenues – on an as needed basis. ◦ How is the F-197 data used?  Used by both the F-195 and F-196 financial applications for the running of edits to check for budgetary reasonableness and accuracy in year end reporting of a school district’s financial data.  Used in the annual School District and Educational Service District Financial Reporting Summary.  Used by SAO as a supplemental tool as part of its fiscal year end reconciliation of the F-196 to the county treasurer reports.  Used by OSPI in helping to estimate the effects of the proposed delay in the June 30 th apportionment payment; used to measure a school district’s Days Cash on Hand as one of the indicators in the financial health tool Annual Conference45

46  F-197 Cash File Questions and Answers : ◦ Does the F-197 data need to be reconciled?  All F-197 data must be entered monthly by the ESDs. Amounts entered are taken from the same source documentation supplied by the County Treasurer for each district located in its boundary.  Pursuant to RCW 28A , the County Treasurer for each county in Washington State is designated as ex officio treasurer of the districts located in his/her county.  As ex officio treasurer, the County is required to submit to each district a monthly report of the state of the finances.  This report is to be submitted not later than the seventh business day of the following month Annual Conference46

47  F-197 Cash File Questions and Answers: ◦ Does the F-197 data need to be reconciled?  In accordance with WAC , each district shall reconcile amounts reported by its County Treasurer with the district records for all funds.  This WAC, as it is written, is directing a district to reconcile amounts monthly with its county treasurers’ report, not the F-197.  Because the F-197 does not capture all of the county treasurers’ report information, it is not intended to be a replacement for the county treasurers’ monthly report; nor does it relieve a district from its monthly reconciliation of its county treasurers’ report.  The F-197 Cash File application is intended to aide in the reconciliation between a district’s financial reports, i.e. F-196 [pursuant to WAC ], and a district’s county treasurers’ report that its county is required to submit to each of its districts monthly Annual Conference47

48  F-197 Cash File Questions and Answers:  OSPI does encourage monthly reconciliation of school district accounts with a simulation of closing using the fund balance budget status report (Form F-198) [pursuant to WAC ].  The F-197 is made available to school districts through the Education Data System (EDS) portal for their recommended comparison to their county treasurers’ monthly report for accuracy and for the reporting of all F- 197 discrepancies to their respective ESD for correction.  OSPI’s F-197 in EDS can be thought of as an on-line bank statement that displays a school district’s checking account balance so it will know its bottom line Annual Conference48

49 Ramona Garner Supervisor, School District/ESD Financial Reporting (360) Annual Conference49

50 Notice is hereby given to school districts and ESDs, in accordance with WAC , that failure to adhere to the due dates below could result in a delay of apportionment payments. The final date for filing or forwarding will be considered as having been met if the postmark or other evidence indicates shipment prior to the due date or the next workday if the due date falls on a weekend. Final Action DateAction October 27 School Districts - Final date for submission of completed F-196 data from the school district to the local ESD. The data will be submitted electronically and/or on an F-196 manual form. Districts not able to submit by the October 27 due date may request a waiver by or written notice to the ESD. November 3ESDs - Final date for the ESD to review and forward the certification page back to the school district for signature. November 10School Districts - The signed certification page is due from the school district to the ESD. November 17ESDs - Final date the signed certification page by the ESD is due at OSPI, School Financial Services Annual Conference50

51 Please make a note of these dates; it is not too early to start gathering the needed data and balancing system items for year-end closing. Starting now on this process will make meeting the listed deadline dates easier for you Annual Conference51

52 In accordance with WAC , districts and ESDs that fail to adhere to the due dates could have a delay of apportionment payments. The final date for filing or forwarding will be considered as having been met if the postmark or other evidence indicates shipment prior to the due date or the next workday if the due date falls on a weekend Annual Conference52

53  The F-196 Process is completed in the EDS platform.  https://eds.ospi.k12.wa.us/login.aspx https://eds.ospi.k12.wa.us/login.aspx  If you have not accessed the EDS platform, contact your ESD for assistance Annual Conference53

54 The SAFS applications have been developed to be viewed with Microsoft’s Internet Explorer 6.0 or higher. Results may be unpredictable using other browsers. To help ensure your browser refreshes the application pages correctly, set the browsing option as follows in Internet Explorer: go to Tools -> Internet Options -> General Tab -> Browsing History -> Settings. Under the “Check for newer versions of stored pages” heading, select ‘Every time I visit the website.’ 2014 Annual Conference54

55 2014 Annual Conference55

56 Added: Program 22 Special Education—Infants and Toddlers—State Program 25 Special Education—Infants and Toddlers—Federal Revenue codes: 2122 Special Education—Infants and Toddlers—Tuition and Fees 4122 Special Education—Infants and Toddlers—State 4322 Special Education—Infants and Toddlers—State 6122 Special Education—Infants and Toddlers—Medicaid Reimbursements 6125 Special Education—Infants and Toddlers—Federal 6222 Special Education—Infants and Toddlers—Medicaid Reimbursements 6225 Special Education—Infants and Toddlers—Federal 6322 Special Education—Infants and Toddlers—Medicaid Reimbursements 6325 Special Education—Infants and Toddlers—Federal 7122 Special Education—Infants and Toddlers 8522 Educational Service Districts—Special Education—Infants and Toddlers Attachment B of the Addendum to Bulletin No dated June 21, 2013 gives detailed information on the revenue codes listed above Annual Conference56

57  Opened/Deleted/Changed the following: General Ledger Accounts: Opened GL 250 in the GF, CPF, and TVF for Local program proceeds Opened GL 819 Restricted for Fund Purposes in the TVF Opened GL 830 Restricted for Debt Service in the DSF Changed the title of GL 606 to Anticipation Notes Payable Changed GL 820 to be Assigned to Encumbrances Changed GL 862 to be Committed from Levy Proceeds Added GL 660—Unearned Revenue in GF, CPF, DSF, ASB, TVF, and Permanent Fund Added GL 831—Restricted for Compensated Absences in GF Added GL 856—Held in Trust for Pensions and Other Employee Benefits in the PPTF Added GL 857—Held in Trust for Private Purposes in the PPTF 2014 Annual Conference57

58  Opened the following revenue codes in the TVF: ◦ 4100 Special Purpose—Unassigned ◦ 4300 Other State Agencies—Unassigned ◦ 5200 General Purpose Direct Federal Grants—Unassigned ◦ 6100 Special Purpose—OSPI Unassigned ◦ 6200 Direct Special Purpose Grants ◦ 6300 Federal Grants Through Other Entities—Unassigned 2014 Annual Conference58

59  Opened/Added/Deleted/Changed the following: ◦ Added Revenue 8521 Educational Service Districts— Special Education in GF ◦ Opened Activity 28 Extracurricular in Programs 52 (Other Title Grants Under ESEA—Federal) and 69 (Compensatory—Other), with Objects 0, 2, 3, 4, 5, 7, 8, and 9 open ◦ Opened Object 8 Travel in Activities 62, 63, and 64 in Program 45 (Skill Center—Basic—State) ◦ Deleted Revenue 4166 Student Achievement ◦ Deleted Program 66 Student Achievement—State 2014 Annual Conference59

60  Opened/Added/Deleted/Changed the following: ◦ Title changes to the Fiduciary fund to be in accordance with GASB 63. ◦ Districts that choose to submit F-196 revision for 2012–13 to make the title change adjustments to be in accordance with GAAP need to do so through the normal F-196 revision process. Please request a WORD document for the revision by sending an to me at: I will then send you the document with instructions. Please make sure you copy your ESD on all requests. New Certification Pages do not need to be re-signed/sent if the only revision item is the title changes to the Fiduciary fund. If any other changes are made to any other report or dollar amounts are changed, then districts will need to re-sign/submit a new Certification Page Annual Conference60

61 2014 Annual Conference  OSPI website link: ◦ 61

62 2014 Annual Conference There are numerous tools on the SAFS’s website to assist Districts. District’s are encouraged to access these templates. 62

63  There are no changes to the Certification Page. Districts are required to hand enter the number of days school was operated. ◦ Districts that have a waiver from Washington State Board of Education will enter the number of days school was operated. Include a copy of the waiver letter with the signed Certification Page.  Verify that the Ending Total Fund Balance on the Certification Page is the same as the Total Fund Balance on the Balance Sheet and the Ending Total Fund Balance on the Statement of Revenues, Expenditures, and Changes in Fund Balance Annual Conference63

64 MUST  Within the F-196 system, your beginning fund balance in any year MUST match the ending fund balance for the prior year. MUST  If you made a change to last year’s F-196 that resulted in a change to fund balance, you MUST enter it as a prior period correction Annual Conference64

65 2014 Annual Conference65

66  There are no changes to the manually entered Indirect Expenditures. The district should enter audit costs, legal costs, public relations expenditures, termination leave for federally supported staff, information system expenditures, pupil management and safety costs, and space and occupancy costs, if a cost plan has been established.  Remember that legal costs are very restrictive. Only enter costs associated with the interpretation of laws, regulations, or board policy.  Also remember that no student record costs can be entered for information systems. Only enter costs associated with fiscal systems (i.e., WSIPC fees, districtwide IT support) Annual Conference66

67  There is help for determining what goes into the Indirect Rates. Information regarding Restricted and Unrestricted Indirect Rates can be found on the OSPI website at: ◦ ◦ Indirect Cost Rates–Federal Indirect Rate Frequently Asked Questions ◦ ◦ Chapter 10 of the Accounting Manual – Grants Management ◦ ◦ OMB Circular A Annual Conference67

68  The 5 year Restricted Indirect Cost Rates have been updated and posted Annual Conference68

69  As stated in the Addendum to Bulletin No , dated January 12, 2012, Attachment B, districts that coded staff under duty code suffix “4,” for the purposes of recording the costs of innovative activities included in supplemental contracts, will submit a brief description of these innovative activities with the district’s F-196.  On The Data Requirements for Supplemental Reports, item D requires an entry. Although there has not been any “cost-of- living” increases for several years, under RCW 28A districts must certify either “yes” or “no” that it has spent funds provided for cost-of-living increases on salaries and salary- related benefits.  Districts that receive the Medicaid reimbursement should use Revenue code 6321 because the Medicaid reimbursement is coming from DSHS, not OSPI Annual Conference69

70  There are no changes to the manually entered distorting items such as election expenses, flow-through grants, alterations/renovations, and fines/penalties. This data is used in the Federal Restricted and Unrestricted Indirect Rate.  The F-196 contains a preliminary MOE test for Special Ed. This is a basic version of the actual test. Districts need only pass one of the four tests to pass MOE: ◦ State and Local, in aggregate. ◦ State and Local, per pupil. ◦ Local, in aggregate. ◦ Local, per pupil.  Districts should note that passing the preliminary test does not necessarily mean that a district has passed Maintenance of Effort for Special Education. Final tests are done following the F-196 process Annual Conference70

71  After your ESD approves your F-196, and you feel that your financial statements are correct, you can proceed with your year-end close. Any review of the district’s F-196 by OSPI does not affect the district’s year-end close process.  If your district requires that an F-196 revision be made, please contact Ramona Garner via at: to request an MS Word document. Upon receipt of your , I will send the district’s F-196 and instructions for making revisions. Don’t forget to cc your ESD when making a revision 2014 Annual Conference71

72  Questions and comments are always welcome and appreciated. Whenever possible, ing your question is beneficial in assuring that OSPI understands the question and allows a “paper trail” for OSPI and the district if the question should arise again. Thank you! 2014 Annual Conference72


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