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San Diego County Office of Education District Financial Services Financial Accounting/Reporting welcome 2013-14 YEAR END CLOSING WORKSHOP 1.

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Presentation on theme: "San Diego County Office of Education District Financial Services Financial Accounting/Reporting welcome 2013-14 YEAR END CLOSING WORKSHOP 1."— Presentation transcript:

1 San Diego County Office of Education District Financial Services Financial Accounting/Reporting welcome 2013-14 YEAR END CLOSING WORKSHOP 1

2 Goal of the Year End Closing Workshop  To review changes to the closing process due to LCFF.  To review year-end closing entries and transactions.  To help ensure that the district’s financial statements are accurate and ready for an audit.  Demonstrate the automated CAT form 2

3 1 Section 1 General Accounting Information 3

4 4

5 5

6 General Accounting Information  Who to call protocol – pg. 1.4-1.7  Financial Accounting & Reporting  Staff list for Business Advisory Services  Warrant Processing List  County Treasury – pg. 1.8-1.34  Contacts  Resolutions for Fund set up  District Funds Conversion Report  Lists Funds and Oracles assigned to your district 6

7 General Accounting Information  Money Processes & Forms – pg. 1.36-1.45  Deposits  GAPS Direct Deposit  WARP (Wire Administration & Request Portal)  ACH Transfers  Report Ordering – pg. 1.46-1.51  Month-end & Year-end  Chart of Accounts & District Dictionary Rollover  Budget Rollovers  CY Revised & Working to Next Year’s Working Rolls can be done now  Any other rolls for 14/15 have to wait until Friday, July 4 th.  This is an overnight process - you will see data on Monday, July 7 th 7

8 2 Section 2 Closing Schedules 8

9 Important Dates (pg. 2.2-2.4)  Friday, June 27 – Final date for all deposits to Wells Fargo Bank by 2 p.m.  Friday, June 30 – Last day for Auditor’s Transfer requests to Financial Accounting by 10 a.m.  Thursday, August 22 – Final day of system access to input FY 2013-14 activity 9

10 Section 3 Checklists 3 10

11 Closing Checklists  Make sure you balance the following prior- year accounts:  Account receivable  Due-to/Due-from  Liabilities  Suspense  Fiscal Year-end closing checklist (p3.5-3.8)  Inventory (p3.9)  Make necessary adjustments to agree with the physical count 11

12 Closing Checklists  Before you call in to close:  Make sure District Closing Checklist is done (p3.11-3.14)  SACS FORM RL & CAT FORM are completed  Do not send in a SACS DAT file until after the board meeting 12

13 4 Section 4 Entries Made Prior to Closing 13

14 Prepaid Expenditures (p4.2) Step 1 - Reverse prior year closing entry: ResGoalFuncObj DR CR Insurancexxxxxxxxxxxx54001,500 Prepaid Exp. xxxx93301,500 Step 2 - Establish current year closing entry: ResGoalFuncObj DR CR Prepaid Exp.xxxx93302,000 Insurancexxxxxxxxxxxx54002,000 14

15 Due to/Due From (p4.4–4.6)  All expenditures must be accounted for in the proper fund  9311 – Due From  9611 – Due To  9311 must equal 9611  If transferring expenditures after June 30, you must use Due To/Due From as the offset instead of cash, see page 4.5 for an example 15

16 Due to/Due From (p4.4–4.6)  Due To & Due From GL account numbers rolling over into the next fiscal year will change (FIS only):  Account 9311 will become 9312 (PY)  Account 9611 will become 9612 (PY)  Districts that still have 9312 and 9612 on their books must be clearing these accounts prior to June 30  When posting a temp. loan between funds see EC 42603 on page 13.2 for limits 16

17 Due to/Due From (p4.8–4.9)  PY AR & AP balances rolled into the current fiscal year:  Account 9201 DR balance  Account 9510 CR balance  Districts should post the related receipts and payments into 9202 & 9511 during the current year  At year end, research any difference  Write off or post final difference to current year object 17

18 Fund Check (p4.7-4.9)  Check GL accounts and suspense accounts  Must check all accounts by resource  Sample fund check form for all your funds before you close the books (p4.9) 18

19 Clearing Apportionment Suspense (p4.10–4.13)  Financial Accounting posts principal apportionment PY recomputations & adjustments to suspense  Suspense must be cleared before closing the year  Check prior year accrual. Difference must be charged to current year account. 19

20 Section 5 Closing Entries & Accruals 5 20

21 Close out PY C/L and A/R (p5.2) A/R & A/P objects must be ZERO before you accrue for the closing year: FD Res Obj DR CR xxxxxx92029,750.64 xxxxxx92019,750.64 FD Res Obj DR CR xxxxxx951010,475.87 xxxxxx951110,475.87 Research differences and determine if activity was charged to a current year object or write-off due to accrual estimate was different than actual. 21

22 Expenditure Accruals (p5.3 -5.4)  Expenses have to be accrued if goods or services were received by June 30  Debit the expenditure account line & Credit 9510.  District will want to set a deadline to submit accruals  District might want to set a materiality limit 22

23 Example B (p5.7) Unpaid invoices of $20,000 for merchandise or services received by June 30: ResGoalFuncObj DR CR Books & Supxxxxxxxxxxxx40006,000 Servicesxxxxxxxxxxxx50004,000 Cap Outlayxxxxxxxxxxxx6000 10,000 C/Lxxxx9510 20,000 23

24 Income Accruals (p5.5–5.6)  Income earned in this fiscal year but not received by June 30 needs to be accrued  Can only accrue revenues that are collectible within one year  Some revenues are not accrued  Examples: property taxes, developer fees, mandated cost reimbursement & deferred maintenance 24

25 Example (p5.7) Recalculate LCFF using actual data and accrue the difference between recalculated state aid & receipts Fund Res Obj DR CR A/R03 xxxx 9201100,000 State Aid 03 xxxx 8011 100,00  Gap Funding was 11.78% now 12.00169574% use the new rate when calculating your LCFF accrual  EPA is now 21.0317%  12/13 Annual adjustment in Feb s/b 8019  Post the expenditure report on your website 25

26 6 Section 6 Payroll Accruals – 9910’s 26

27 Payroll Accruals/9910’s 9910-000 Payroll 9910-311 STRS 9910-312 STRS CB Plan 9910-321 PERS 9910-322 PERS EPMC 9910-331 Social Security 9910-332 Medicare 9910-333 ARS 9910-340 H&W 9910-350 SUI 9910-360 W/C 9910-370 Retiree H&W 9910-371 OPEB Allocation 9910-375 OPEB Direct 9910-380 PERS Red 9910-390 Other Benefits Payroll Holding Accounts 27

28 Payroll Accruals/9910’s – SUI (p6.5) Step 1 - Current FY General Ledger - SUI expenses for quarter ending 6/30: FD Res Obj DRCR 06 xxxx 3501-0002,000 06 xxxx 9910-3502,000 Step 2 - District Journal Entry to set up Current FY accrual: Fund Res Obj DR CR 06 xxxx 9910-3502,000 06 xxxx 9510 2,000 28

29 Payroll Accruals/9910’s – SUI (p6.5) Step 3 - FA will post auditor’s transfer for quarter ending 6/30 to suspense in Subsequent FY: FD Res Obj DR CR 06 9999 79992,000 06 9999 9110 2,000 Step 4 - District Journal Entry to clear suspense accrual in the Subsequent FY: FD Res Obj DR CR 06 xxxx 9511 2,000 06 9999 7999 2,000 29

30 Payroll Accruals  Same process for STRS & PERS  9910-371 & 9910-375 OPEB accrual process is under Section 12 GASB 30

31 7 Section 7 Direct/Indirect Costs 31

32 Direct Costs (p7.2-7.3)  Expenses that can be separately identified and charged as part of the costs of a program  Transfers of costs normally change the function of expenditures  Examples: Catering, print shop, transportation & field trips  5710 must net to zero at the fund level  5750 must net to zero between funds 32

33 Direct Costs – Sample Entries (p7.2-7.3) NCLB School Choice (intrafund): DR06-00 3010 1110 3600 5710 Title I CR03-00 0000 0000 3600 5710 Transportation Catering charges (interfund): DR 03-00 0000 0000 2140 5750 Professional Dev CR 13-00 5310 0000 3700 5750 Food Services Print shop (interfund): DR 12-06 XXXX 0001 XXXX 5750 CDC CR 03-00 0000 0000 7200 5750 Undistributed Admin. expenses to developer fees (interfund): DR 25-19 0000 0000 7200 5750 Developer Fees CR 03-00 0000 0000 7200 5750 Undistributed 33

34 Indirect Costs (p7.5-7.11)  Agencywide costs for general management that are not readily identifiable with a particular program but are necessary for the overall operation  Examples: Accounting, budgeting, payroll, personnel, purchasing & warehousing  TABS Workshop available on web cast at http://www.sdcoe.net/business2/dfs/?loc=materials&m=88 http://www.sdcoe.net/business2/dfs/?loc=materials&m=88  Multiply expenditures in objects 1000 – 5999 less object 5100 by the approved indirect cost rate 34

35 Indirect Costs (p7.5-7.11)  Approved rates are posted at the CDE web site at:  http://www.cde.ca.gov/fg/ac/ic/ http://www.cde.ca.gov/fg/ac/ic/  In manual on p7.6 – 7.10  Must use the lesser of the CDE approved rate or a grant stated max each year  7310 must net to zero by function & object at the fund level  7350 must net to zero by function & object between funds 35

36 Indirect Costs (p7.5-7.11) Sample entry (intrafund): DR 06-00 3010 1110 7210 7310 TITLE I CR 03-00 0000 0000 7210 7310 GF Sample entry (interfund): DR 13-00 5310 0000 7210 7350 Food Services CR 03-00 0000 0000 7210 7350 GF 36

37 9 Section 9 Categorical Programs 37

38 Sources of Categorical Funding (p9.2)  Federal  State  Pass-Through 38

39 Grant or Entitlement? (p9.3–9.4)  Grant (Deferred Revenue – D resources)  Entitlement (Fund Balance – F resources)  Difference is how revenue is recognized  See SACS Resource Code Query to find out which applies to each resource  http://www.cde.ca.gov/fg/ac/ac/ http://www.cde.ca.gov/fg/ac/ac/ 39

40 SDCOE Transfer of Funds (p16.7-16.8) Example 1 - Lottery funds transfer Fd Res Obj DR CR 031100 9110 1,000 03 1100 8782 1,000 066300 9110 100 06 6300 8782 100 Example 2 - Step A ROP funds (non-lottery) transfer Fd Res Obj DR CR 069025 9110 1,000 06 9025 8782 1,000 Step B flex/sweep ROP Fd Res Obj DR CR 069025 8990 1,000 06 9025 9110 1,000 030000 9110 1,000 03 0000 8990 1,000 40

41 Form CAT  Use CAT Form to track your federal, state and local categorical programs  Calculates deferred revenue, receivable, ending balance  On-line video training available 41

42 Entries to Make After Completing the CAT Form (p9.13-9.14) Step 1 - Closing Entry Unearned revenue: ResObj DR CR Title I3010829010,000 Def. Rev30109650 10,000 Step 2 - Entry in the Subsequent Year Clear unearned revenue: ResObj DR CR Def Rev3010965010,000 Title I30108290 10,000 42

43 Entries to Make After Completing the CAT Form (p9.13-9.14) Step 1 - Closing Entry Accounts Receivable: ResObjDRCR Acct Rec.630092015,000 Lottery6300 8560 5,000 Step 2 - Entries in the Subsequent Year Clear Suspense: ResObjDRCR Suspense999989997,500 Lottery630092025,000 Lottery630085602,500 Clear Accounts Receivable: ResObjDRCR Lottery63009202 5,000 Lottery630092015,000 43

44 Entries to Make After Completing the CAT Form (p9.13-9.14) Step 1 - Closing Entry Accounts Payable: ResObjDR CR Spec Ed653585903,000 Acct. Pay.65359510 3,000 Step 2 - Entries in the Subsequent Year Accounts Payable: Pay Invoice: ResObjDR CR Spec Ed 653595113,000 Spec Ed65359110 3,000 Clear Payable: ResObjDR CR Spec Ed653595103,000 Spec Ed65359511 3,000 44

45 10 Section 10 Deferred Maintenance 45

46 Deferred Maintenance (p10.1–10.14)  Funding previously received for the Deferred Maintenance (DM) program is included in LCFF  The Deferred Maintenance Fund, Fund 14 in SACS, is classified as a special revenue fund  GASB 54 specifies that use of a special revenue fund is appropriate only if a substantial portion of the fund’s inflows are restricted or committed revenue sources and expected to continue  Many LEA Boards committed the DM revenue and appropriately recognized it directly in fund 14 using object 8091  Can no longer be recognized in 8150 and interfund transferred to fund 14 46

47 Deferred Maintenance (p10.1–10.14)  LEAs who receive funding from the State School Facilities Program must contribution 3% of total general fund expenditures including Other Financing Uses to the Restricted Maintenance Account (RMA) 8150  EC 17070.766 allows LEAs to reduce RMA contribution to 1% (temporary flexibility)  Effective July 1, 2015, flexibility ends & districts must deposit a least 3%  EC 17070.75 allows an LEA’s contribution to its RMA over 2.5% to be counted towards its DM contribution  If DM contribution goes directly to fund 14 then does not count 47

48 Deferred Maintenance (p10.1–10.14)  If DM is moved back into general fund then general fund expenditures will increase and so will the reserve requirement  CDE sees some possible solutions:  Change statute 17070.75(b)(1) Establish a restricted account within the general fund  Reclassify the fund 14 to be a capital projects fund so interfund transfer are ok 48

49 Section 11 Reserves 11 49

50 Reserves (p11.1–11.8)  Reserves are accounts earmarked for a portion of a fund balance to indicate that it is not available for other expenditures  Revolving cash9130=9711  Stores9320=9712  Prepaid expenditures9330=9713  Restricted program balances9740  Economic uncertainty9770  Other Designations9780  Reserves could also be designations by the Board 50

51 Fund Balance Classifications  Fund Balance Classifications - hierarchy based upon the level of constraint placed upon the use of resources. Restricted Funds 1.Nonspendable  Revolving cash9130 = 9711  Stores9320 = 9712  Prepaid expenditures9330 = 9713  All Other Nonspendable Assets9719 2.Restricted  Restricted Balance9740 51

52 New Fund Balance Classifications Unrestricted Funds 3.Committed - board action  Stabilization Arrangements9750  Other Commitments9760 4.Assigned - designated official(s)  Other Assignments9780 5.Unassigned  Reserve for Economic Uncertainties9789 52

53 Reserves Sample (p11.2) In the general ledger, Stores - 9320 has a balance of $5,000. When the physical inventory was taken, the actual stock was valued at $ 5,500. District journal entry: Step 1 - Increase balance in Stores FdObjectDR CR 039320500 Stores 034000 500 Supplies Step 2 - Set up reserve 0397995,500 Total Reserves 039712 5,500 Reserves for Stores 53

54 12 Section 12 GASB 54

55 GASB 63  GASB 63 - Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position  Very uncommon but Common Core SS  Certain transactions subject to deferred recognition do not meet the definition of assets or liabilities CURRENTPROPOSED 9100–9499 Assets 9400–9499 Capital Assets 9100–9489 Assets 9400–9489 Capital Assets 9490–9499 Deferred Outflows of Resources 9490 Deferred Outflows of Resources 9500–9699 Liabilities 9660–9669 Long-Term Liabilities 9500–9689 Liabilities 9660–9669 Long-Term Liabilities 9690–9699 Deferred Inflows of Resources 9690 Deferred Inflows of Resources 55

56 GASB Coming Soon  GASB 65 - Items Previously Reported as Assets and Liabilities  Effective in 2013-14  9650 in now Unearned Revenue  GASB 68 - Accounting & Financial Reporting for Pension Plans  Effective in 2014-15  Unfunded liabilities PERS & STRS 56

57 Section 13 Temporary Borrowing 13 57

58 Internal Borrowing (p13.2 – 13.3)  Temporary borrowing between funds  Must conform to EC 42603  Must have governing board approval  Must be repaid either in the same fiscal year or in the following fiscal year if borrowing was initiated within final 120 days of fiscal year  Sample resolution provided on website & page 13.3 58

59 Due to / Due From (p13.2) Step 1 - Setting up the interfund loan FundObjectDRCR 039311-013100,000 (Due from fund 13) 039110100,000 139110100,000 139611-003100,000 (Due to fund 03) Step 2 - Repayment of internal borrowing FundObjectDRCR 039110100,000 039311-013100,000 139611-003100,000 139110100,000 59

60 15 Section 15 Audit 60

61 Getting Ready for the Auditor (p15.1 – 15.11)  Recommend that a binder or a electronic file be designated for copies of documents that the auditor will need  A list of documents is provided  LCFF Certification  CALPADS report 1.17 61

62 Section 16 Accounting Updates 16 62

63 LCFF Changes  Resources closed to 13/14 revenue inc.8980  1300 Class Size Reduction K–3 (optional Resource)  2200 Continuation Education  2400 Juvenile Court/County Community Schools  2410 Juvenile Court  2420 County Community Schools  2430 Community Day Schools  7090 Economic Impact Aid (EIA) – State Compensatory Education (SCE)  7091 Economic Impact Aid – Limited English Proficient (LEP)  7250 School Based Coordinated Program (SBCP)  7230 Transportation: Home to School  7235 Transportation: School Bus Replacement  7240 Transportation: SD/OI 63

64 LCFF Changes  Objects:  All LCFF revenue in 8011 none in old flexed accounts 8590 or 8015  No 8091 transfers to special ed or community day  No 8092 or 3800s for PERS reduction  No 7615 or 8915 for transfer to DM fund 14 replaced with 8091 transfer  No 8434 CSR 64

65 LCFF Changes  Post transfers/payments to COEs for district students in programs operated by the COE using Goal 0000 and Object 7142, Other Tuition, Excess Costs  COEs should record the payment received from districts using Object 8710, Tuition  Not a contracted service 5100/5800 65

66 Common Errors (p16.2-16.5)  Incorrect use of abatements  5 allowable abatements CSAM 560  Current year expenditures only - no prior year  5100 subagreements for instructional services only  Payments to services providers >$25k per contract  Affect indirect cost  Function 7700 - Centralized Data Processing  Computer/Information Technology  SIS, FIS, PeopleSoft, etc. 66

67 Goals  ROP, Perkins, CTE, & other vocation ed.  MOE - Federal funding at risk  6000 = ROP for K-12  4630 = ROP/vocational ed/CTE for adult ed. fund 11  3800 = all other CTE/vocational ed.  Perkins/CTE - 3515, 3540, 3550  Adult Ed. = 4000 to 4749  MOE - Federal funding at risk  Fund 11 67


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