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2010-2011 YEAR END CLOSING FOR DISTRICTS Marin County Office of Education June 30, 2011.

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Presentation on theme: "2010-2011 YEAR END CLOSING FOR DISTRICTS Marin County Office of Education June 30, 2011."— Presentation transcript:

1 YEAR END CLOSING FOR DISTRICTS Marin County Office of Education June 30, 2011

2 Table of Contents Page 3CAT Form Overview Pages 4-9CAT Form directions for Categorical Programs subject to Deferred Revenue Pages CAT Form directions for Categorical Programs subject to Restricted Ending Balances Pages 15-21PCR-PCRAF Form directions Pages 22SEMA-SEMB Overview Page 23QEIA Backfill Page 24Tier III / Fair Share Reduction Page 25Deferrals –and K-3 CSR Page 26ARRA/SFSF Page Miscellaneous – Key Deadlines 2

3 CAT Form Directions PLEASE BE AWARE THAT THESE DIRECTIONS COME FROM THE SACS SOFTWARE FOR IS NOT YET AVAILABLE FOR DISTRIBUTION Form CAT—Schedule for Categoricals Form CAT is an optional form designed to assist in the determination of the correct amount of unused grant award (carryover), accounts payable, accounts receivable, deferred revenue, and/or restricted ending balance at the end of the fiscal year for all federal, state, and local categorical programs for which the district[COE] is responsible, regardless of the funding source. - Specific revenue recognition policies are used in financial accounting for categorical funds. Applying the appropriate policy is extremely important. To account for a categorical program correctly, the determination must be made as to whether the program is subject to deferred revenue or subject to restricted ending balance. Refer to the definitions in the sections below for "Categorical Programs Subject to Deferred Revenues" (beginning on page 84) and "Categorical Programs Subject to Restricted Ending Balance" (beginning on page 88).Categorical Programs Subject to Deferred RevenuesCategorical Programs Subject to Restricted Ending Balance Information on whether a particular state or federal program administered by the CDE is accounted for as subject to deferred revenue (D) or subject to restricted ending balance (F) is available through the SACS Query, located on the CDE Web page: Select either the PCA Number Query or SACS Resource Code Query and enter the desired search criteria to access program information from the SACS Query database. - There are six worksheets available in Form CAT: 1. Federal categorical programs subject to deferred revenues 2. State categorical programs subject to deferred revenues 3. Local categorical programs subject to deferred revenues 4. Federal categorical programs subject to restricted ending balances 5. State categorical programs subject to restricted ending balances 6. Local categorical programs subject to restricted ending balances Form CAT worksheets are completed using data entry; there are no extractions. Click on the tab at the bottom of the screen to access a worksheet (the horizontal scroll bar may need to be used for the applicable worksheet tab to appear). If zeros are used at the beginning or end of any of the codes entered into the column headings, the software will "drop" them. In order to prevent the zeros from being dropped, type a single quote mark (') before the number. 3

4 CAT Form Directions- Categorical Programs Subject to Deferred Revenues Categorical Programs Subject to Deferred Revenues Categorical programs are classified as subject to deferred revenues if their revenue is earned at the time qualifying expenditures are made. In general, an expenditure is the prime factor for determining grant eligibility and revenue is recognized when the qualifying expenditure is made. Revenue received but not expended by the end of the fiscal year must be reported as deferred revenue. The following rules apply to accounting for these programs: 1. The revenue is initially recognized when cash is received. 2. At the end of the year, if the total revenues received exceed the total donor authorized expenditures, the difference is recorded as deferred revenue. Deferred revenue is revenue that has been received but has not been earned. The total expenditures used in this calculation may not exceed the program award. 3. At the end of the year, if the total revenues received are less than the total donor authorized expenditures, the difference is recorded as an accounts receivable. The total expenditures used in this calculation may not exceed the program award. 4. Unused program award revenue (carryover) is the difference between the total program award and the total donor-authorized expenditures for the year. The amount of any unused program award revenue (carryover) is not recorded in the books but is added to the amount of the program award for the subsequent year to determine the total revenue available. The unused program award revenue should not be recorded as an accounts receivable because it is not earned. Column Provide for each program the official name of the program, the five-digit Headings number from the Catalog of Federal Domestic Assistance (federal programs only), the resource code used to record the program, the revenue object, and the local description of the program, if any. 4

5 CAT Form Directions – Categorical Programs Subject to Deferred Revenues AWARD Lines 1/1a Prior Year Carryover Report the amount of the prior year's unused award, which may be expended in the current year. Include any adjustments made to the prior year's award. This amount includes any deferred revenue from the prior year. Line 1b Restricted Balance Transfers (Object 8997) State/Local Report the amount of restricted balances as of June 30, 2008 transferred using Object 8997 from restricted resources to the unrestricted General Fund pursuant to flexibility provided in Section 42 of SBX3 4 (Chapter 12, Statutes of 2009). Line 1c Adjusted Prior Year Carryover State/Local The sum of Prior Year Carryover (Line 1a) plus the Restricted Balance Transfers (Line 1b). Line 2a Current Year Award Report the amount of the current year's award. This amount should agree with the award letter or document from the grantor agency. Line 2b Transferability (NCLB) (Object 8990) (FOR FEDERALLY FUNDED Federal PROGRAMS SUBJECT TO DEFERRED REVENUES ONLY) Report transfers of federal funds made using Object 8990, Contributions from Restricted Revenues, pursuant to Section 6123(b) of subpart 2 of Part A of Title VI of ESEA, as amended by NCLB. 5

6 CAT Form Directions – Categorical Programs Subject to Deferred Revenues Lines Other Adjustments 2b State/ Report any other adjustments made to the grant award. Local 2c Federal Lines Adjusted Current Year Award 2c State/ For State and Local Programs, the sum of the Current Year Award (Line 2a) plus Other Adjustments (Line 2b). For LocalFederal programs, the sum 2d Federal of the Current Year Award (Line 2a) plus NCLB Transferability (Line 2b) plus Other Adjustments (Line 2c). Line 3 Required Matching Funds/Other Report the amount of any required matching funds as indicated in the award letter or document. If there is no required match, enter zero. Exclude "in-kind" matching. Report other income generated by certain categorical programs such as interest earned from Instructional Materials funds (EC Section ). Exclude contributions made using Object 8980, Contributions from Unrestricted Revenues. Line 4 Total Available Award Federal The sum of the Prior Year Carryover (Line 1) plus the Adjusted Current Year Award (Line 2d) plus the Required Matching Funds/Other (Line 3). This amount represents the total available to be spent this year. Line 4 Total Available Award State/The sum of the Adjusted Prior Year Carryover (Line 1c) plus the Adjusted Current Year Award (Line 2c) plus the LocalRequired Matching Funds/Other (Line 3). This amount represents the total available to be spent this year. 6

7 CAT Form Directions – Categorical Programs Subject to Deferred Revenues REVENUES Line 5 Revenue Deferred from Prior Year Report the amount of deferred revenue recorded in the prior year. Line 6 Cash Received in Current Year Report the amount of cash received during the current year. Include transfers made using objects 8990 and 8997; exclude transfers made using object Include the amount of any cash received from the prior year's award that was not recorded as an account receivable in the prior year. If adjustments were made to the current year's revenue accounts as a result of prior year's accounts receivable and accounts payable, report these amounts also. Line 7 Contributed Matching Funds Report the amount of matching funds contributed by the district[COE]. Exclude "in-kind" matching. Line 8 Total Available The sum of the Revenue Deferred from Prior Year (Line 5) plus the Cash Received in Current Year (Line 6) plus the Contributed Matching Funds (Line 7). 7

8 CAT Forms Directions – Categorical Programs Subject to Deferred Revenues EXPENDITURES Line 9 Donor-Authorized Expenditures Report the sum of the direct, direct support, and indirect costs as approved by the grantor agency; include expenditures of required matching funds. The Donor-Authorized Expenditures may not exceed the Total Available Award (Line 4). Line 10 Non Donor-Authorized Expenditures Report any expenditures not authorized by the grantor agency, e.g., expenditures in excess of the available award amount (encroachment). Districts[COEs] should record a contribution to restricted programs using Object 8980, Contributions from Unrestricted Revenues, equal to their non donor-authorized expenditures. Line 11 Total Expenditures The sum of the Donor-Authorized Expenditures (Line 9) plus the Non Donor-Authorized Expenditures (Line 10). Line 12 Amounts Included on Line 6 Above for Prior Year Adjustments Report the amount of the adjustments made to the current year's revenue accounts as a result of prior year's accounts receivable and accounts payable on this line. These adjustments should be reported as the opposite of the adjustments made on Line 6. For example, if a negative adjustment of $200 was reported on Line 6 for an adjustment for prior year's accounts receivable, this line should show a positive adjustment of $200. Line 13 Calculation of Deferred Revenue or Accounts Payable, and Accounts Receivable Amounts The sum of Line 8 minus Line 9 plus Line 12. Report this amount on Line 13a, 13b, or 13c, as applicable. 8

9 CAT Forms Directions – Categorical Programs Subject to Deferred Revenues Line 13a If the computed amount on Line 13 is positive and the program allows for unused funds to be retained and used in the next year, report the amount on Line 13a, Deferred Revenue. The deferred revenue is the amount of categorical funds, which have been received as of June 30, but have not been spent and, therefore, have not been earned. Line 13b If the computed amount on Line 13 is positive and the program does not allow unused funds to be retained and used in the next year, report the amount on Line 13b, Accounts Payable. This amount is owed back to the grantor agency. Line 13c If the computed amount on Line 13 is negative, report the amount on Line 13c, Accounts Receivable. This is the amount of revenue earned but not received from the grantor agency. Line 14 Unused Grant Award Calculation The sum of the Total Available Award (Line 4) minus Donor-Authorized Expenditures (Line 9). This represents the amount of the current year's award which has not been spent. Report this amount on Line 14 if carryover is allowed. Line 15 If Carryover Is Allowed, Enter Line 14 Amount Here If carryover is allowed, enter the amount from Line 14; add this amount to the award for the next year to determine the total available award. If the award does not allow the unused funds to be carried over to the next year, enter zero. Districts should use this information in preparing the next year's budget. Line 16 Reconciliation of Revenue The sum of Line 5 plus Line 6, minus lines 13a and 13b, plus Line 13c. This line should agree with the revenue reported on the financial statements for this program. Revenue includes program revenue, transfers (objects 8990 and 8997), and interest earnings. 9

10 CAT Form Directions Categorical Programs Subject to Restricted Ending Balances Categorical Programs Subject to Restricted Ending Balances Categorical programs are classified as Subject to Restricted Ending Balances if their revenue is earned at the time the funds are apportioned to the LEA. These categorical programs are generally entitlements based on an allocation formula. These programs are restricted, but more in form than in substance. Only a failure on the part of the LEA to comply with regulations will cause a forfeiture of the funds. Any program funds not expended before the end of the year must be reported as Restricted Ending Balance. The following rules apply to accounting for these programs: 1. The revenue is recognized when cash is received. 2. The amount of any revenue that has not been received by June 30, but is expected to be received by September 30, should be accrued as an accounts receivable. 3. At the end of the year, any program funds that have not been expended are recorded as restricted ending balance. This is done because restrictions remain on the type of expenditures that can be made from the revenues; therefore, the balance for this program must be separated from the other balances available for general use. Column Provide for each program the official name of the program, the five-digit Headings number from the Catalog of Federal Domestic Assistance (federal programs only), the resource code used to record the program, the revenue object, and the local description of the program, if any. 10

11 CAT Form Directions Categorical Programs Subject to Restricted Ending Balances AWARD Lines 1/1a Prior Year Restricted Ending Balance Report the restricted ending balance for this award as reported last year. Include any adjustments that were made to the prior year's award. Line 1b Restricted Balance Transfers (Object 8997) State/Report the amount of restricted balances as of June 30, 2008 transferred using Object 8997 from restricted Localresources to the unrestricted General Fund pursuant to flexibility provided in Section 42 of SBX3 4 (Chapter 12, Statutes of 2009). Line 1c Adjusted Prior Year Restricted Ending Balance State/ The sum of the Prior Year Restricted Ending Balance as reported last year (Line 1a), including any adjustments Localthat were made to the prior year's award, plus the Restricted Balance Transfers (Line 1b). Line 2a Current Year Award Report the amount of the current year's award. This amount should agree with the award letter or document from the grantor agency. Line Other Adjustments 2b Report any other adjustments made to the award. Line Adjusted Current Year Award 2c The sum of the Current Year Award (Line 2a) plus Other Adjustments (Line 2b). 11

12 CAT Form Directions Categorical Programs Subject to Restricted Ending Balances Line 3 Required Matching Funds/Other Report the amount of any required matching funds as indicated in the award letter or document. If there is no required match, enter zero. Exclude "in-kind" matching. Report other income generated by certain categorical programs such as interest earned from Instructional Materials funds (EC Section ). Line 4 Total Available Award Federal The sum of the Prior Year Restricted Ending Balance (Line 1) plus the Adjusted Current Year Award (Line 2c) plus the Required Matching Funds/Other (Line 3). This amount represents the total available to be spent this year. Line 4 Total Available Award State/ The sum of the Adjusted Prior Year Restricted Ending Balance (Line 1c) plus the Adjusted Current Year Award (Line Local2c) plus the Required Matching Funds/Other (Line 3). This amount represents the total available to be spent this year. 12

13 CAT Form Directions Categorical Programs Subject to Restricted Ending Balances REVENUES Line 5 Cash Received in Current Year Report the amount of the current year's award received. Include transfers made using object Include in this amount any adjustments to the current year's revenue account as a result of the prior year's accounts receivable. Line 6 Amounts Included on Line 5 for Prior Year Adjustments Report the amount of the adjustments made to the current year's revenue accounts as a result of the prior year's accounts receivable on this line. These adjustments should be reported as the opposite of the adjustments made on Line 5. For example, if a negative adjustment of $200 was reported on Line 5 for an adjustment for prior year's accounts receivable, this line should show a positive adjustment of $200. Line 7a Accounts Receivable The sum of Line 2c minus Line 5 minus Line 6. This is the amount of the award for the current year that has not been received from the donor agency. Line 7b Noncurrent Accounts Receivable Report the portion of Line 7a that is Noncurrent Accounts Receivable and is not expected to be received by September 30. Do not make an entry to your books for the Noncurrent Accounts Receivable. Line 7c Current Accounts Receivable The sum of Line 7a minus 7b. This represents the Current Accounts Receivable portion of the award for the current year that is expected to be received by September 30. An entry should be made to your books for the Current Accounts Receivable. Line 8 Contributed Matching Funds Report the amount of matching funds contributed by the district[COE]. Exclude "in-kind" matching. Line 9 Total Available The sum of the Cash Received in Current Year (Line 5) plus the Current Accounts Receivable (Line 7c) plus the Contributed Matching Funds (Line 8). This line should agree with the total revenue reported for this categorical program on the financial statements. 13

14 CAT Form Directions Categorical Programs Subject to Restricted Ending Balances EXPENDITURES Line 10 Donor-Authorized Expenditures Report the sum of the direct, direct support, and indirect costs as approved by the grantor agency; include expenditures of required matching funds. The Donor-Authorized Expenditures may not exceed the Total Available Award (Line 4). Line 11 Non Donor-Authorized Expenditures Report any expenditure not authorized by the grantor agency, e.g., expenditures in excess of the available award amount (encroachment). Districts[COEs] should record a contribution to restricted programs using Object 8980, Contributions from Unrestricted Revenues, equal to their non donor-authorized expenditures. Line 12 Total Expenditures The sum of the Donor-Authorized Expenditures (Line 10) plus the Non Donor-Authorized Expenditures (Line 11). Line 13 Restricted Ending Balance—Current Year The sum of the Total Available Award (Line 4) minus the Donor-Authorized Expenditures (Line 10). This represents the amount of the award that has not been spent, and in most cases will agree with the ending balance reported on the financial statements for this program. If Noncurrent Accounts Receivable (Line 7b) exists, subtract that amount from the restricted ending balance calculated on this line to arrive at the ending balance reported on the financial statements. Note that prior year adjustments may necessitate an additional contribution to the restricted programs or a reverse contribution to the unrestricted programs. 14

15 PCR - PCRAF Forms (PCRAF) PLEASE BE AWARE THAT THESE DIRECTIONS COME FROM THE SACS SOFTWARE FOR IS NOT YET AVAILABLE FOR DISTRIBUTION The PCR form is dependent on the PCRAF form. PCRAF must be completed first. Form PCRAF—Program Cost Report Schedule of Allocation Factors The Program Cost Report Schedule of Allocation Factors, Form PCRAF, is used to distribute – or allocate – among program goals those Fund 01 expenditures that, in addition to having a support function, have an "Undistributed" goal (0000 and 9000). When opened, Form PCRAF automatically extracts into Line A any Undistributed general ledger expenditures that must be allocated to program goals. Allocation factors are only needed for columns with amounts on Line A. If there are costs on Line A for any of the columns, Form PCRAF must be completed and saved before Form PCR will be considered complete (i.e., undistributed costs in goals 0000 and 9000 must be allocated to specific goals before Form PCR will balance to total Fund 01 expenditures). When completing Form PCRAF, enter allocation factors – FTE Teachers, CUs, or PTs – for all columns that have amounts on Line A. For information on how to calculate allocation factors, refer to Program Cost Accounting in CSAM. Items of note in Form PCRAF include: Complete counts of allocation factors are required unless specific guidelines are met. For each column with costs on Line A, complete counts of allocation factors (FTEs, CUs, or PTs) must be entered unless documentation exists to substantiate why the factors are being excluded. For example, if an LEA has 6 programs, allocation factors must be entered for all six programs unless documentation shows why the factor is being excluded. This is because, if support costs have not already been direct-charged to a goal and they are being distributed using the allocation method, the support costs should be split proportionately among all programs of the LEA. · Some LEAs direct-charge their instruction and instruction-related programs for nearly all of a particular support cost and the only portion left in goals 0000 and 9000 is that applicable to the central administrative offices. When this occurs, so that the remaining costs are allocated proportionately among all of the LEA's goals, enter complete allocation factor counts for the column that corresponds with the support cost. For example, an LEA direct-charges its programs for plant maintenance and operations and the only costs left in Function 8100, Plant Maintenance and Operations, with Goal 0000, are those applicable to the central administrative offices. For the Plant Maintenance and Operations column on Form PCRAF, the LEA would enter complete CU allocation factors for all of its programs so that the remaining Function 8100 costs are spread proportionately among its programs. 15

16 PCR - PCRAF Forms (PCRAF) Once allocation factors (FTEs, CU, PTs) have been entered and Form PCRAF has been saved, opening and saving Form PCR prompts the software to create "Object PCRA" adjusting entries that allocate goals 0000 and 9000 costs to specific goals by crediting (reducing) goals 0000 and 9000 and debiting (increasing) the goals where allocation factors were entered. A summary of costs allocated to various goals can be seen in Form PCR, Schedule of Allocated Costs (AC). From California School Accounting Manual: Allocating Support Costs Using Allocation Factors The benefit provided to instructional programs by a support service function varies with the type of support provided. The benefit to programs from certain support services varies in relation to the number of instructional staff receiving the support. The benefit to programs from other support services varies in relation to the amount of space occupied by the instructional program or the number of students being served. Three cost allocation factors provide the basis for allocating to programs the different types of support service costs: 1.Full-Time-Equivalent Teachers (FTEs) 2.Classroom Units (CUs) 3.Pupils Transported (PTs) Through a determination of the counts of each factor by program, Goal 0000 costs can be proportionately distributed to each goal Allocation Factors Full-Time- Equivalent (FTE) Teachers Definition: The full-time-equivalent (FTE) teacher allocation factor is the number of full-time-equivalent teachers serving (assigned) in each instructional program (goal). An assignment is a specific responsibility, classroom assignment, or course section taught. Teachers or assistant teachers (certificated or classified) should be included in the FTE count if they carry active student registers and their services generate average daily attendance (ADA). Certificated and classified employees providing special education designated instruction services and carrying active student registers should also be included in the FTE count. 3900). 16

17 PCR-PCRAF Forms (PCRAF Continued) Full-time equivalency is determined on the basis of the number of hours (i.e., of actual instruction of students) that constitutes a full-time teaching assignment for the agency. Taking the ratio of assignment hours to the number of hours that constitutes a full ‑ time assignment calculates the FTE. The four common categories for assignments are: Single assignment: A full-time teacher assigned to a single goal is counted as 1.0 FTE for that goal. Split assignment: A full-time teacher assigned to two or more goals is split between the goals on the basis of the proportionate share of hours in each assignment. For purposes of determining the number of FTEs to be allocated to each assignment, preparation periods, supervision, noon duty, individualized educational program (IEP) assessments, and other ancillary assignments are to be disregarded in the FTE calculation. Study halls are considered a regular class assignment. Semester assignment: A full-time teacher assigned to programs of one semester or less is counted as a 0.5 FTE. Full-time teachers assigned to programs of more than one semester are counted as 1 FTE. Part-time assignment: Prorate, using the preceding basic definition. For example, a teacher instructing in a program on a one-fourth time basis would be counted as a.25 FTE. Totaling the computed number of FTE teacher units determines the FTE teacher count for each instructional goal. If applicable, FTE teacher counts may also be calculated for the community services and child care and development services goals. Include in the count those teachers who are assigned to programs operated in the district but who are not employed by the district (e.g., those in special education or regional occupational center/program classes in which the teachers are paid by the county office). These FTE counts are to be recorded in the nonagency activities educational program. For consistency, the FTE teacher count may be developed at any time after classes have been established for the second semester. In a large district an efficient way to compile the total FTE units may be to have each administrator complete a count and then to combine the information into a composite work sheet. Care must be taken to ensure that more than one site administrator does not report the same FTE units. 17

18 PCR-PCRAF Forms (PCRAF Continued) FTE Functions: FTE factors are used to allocate costs in instruction-related functions (2100, 2420, 2490, and 2700) and pupil services functions (3110, 3120, 3130, 3140, 3150, 3160, and Classroom Units (CU) Definition: The classroom unit (CU) allocation factor is the number of units of space occupied by each program. The CU provides a method of converting each program's square footage into a standardized allocation factor. Although the term "classroom unit" was derived from using an "average" classroom as the basis for the measurement, all types of space are included in the CU count, not just classrooms. When calculating CUs, count space that is occupied by an identifiable function or activity. If multiple programs share an area, the CU is allocated to each program on the basis of the percentage of hours the room is used by each program. Report noninstructional programs occupying space in district administration facilities as part of the district administration program. Common-use areas are considered to benefit all programs and are not included in the calculation of CUs. They include areas such as school offices, media centers, libraries, corridors, restrooms, faculty rooms, unoccupied rooms, and outdoor areas (swimming pools, ball fields). Instruction and office areas. For "people-occupied" areas, such as instruction or office space, a room that falls with the general range of 800 to 1,100 square feet counts as one (1.0) CU. Areas that fall outside this range are converted to CUs by dividing the actual square footage by 960. For example, a room occupying 1,200 square feet is 1.25 CU (1,200 divided by 960). Examples of areas converted to CUs by using 960 might include large areas, such as science labs, computer labs, multipurpose rooms, and gymnasiums; small areas, such as cubicles for speech therapy; and agency wide administration facilities. 18

19 PCR-PCRAF Forms (PCRAF Continued) Operational areas. Buildings such as maintenance shops, warehouses, and transportation facilities generally require approximately one-third the amount of maintenance and upkeep required for spaces used for students and other services. Convert these operational areas to CUs by dividing square footage by 2,880 (960 x 3). Partially enclosed spaces, such as sheds or patios, may be excluded from the calculation. Food services. In the area of food services, only the kitchen and serving areas are counted as CUs. The eating area is considered common space and is omitted from the calculation unless other activities occur in this area. If a multipurpose room is used for part of the day for classes and part of the day as the eating area, the CUs for the portion of the day attributable to classes are assigned to the appropriate program, and the portion attributable to food services is omitted. CU Functions: CU factors are used to allocate costs in the plant services functions (8100 and 8700). Pupils Transported (PT) Definition: The pupils transported (PT) allocation factor is the number of students transported in the year, which is determined by counting the number of students in each program transported from home to school. This factor represents the number of students, not the number of trips. Special education pupils receiving home-to-school transportation may be counted in the special education program only if their IEPs require home-to-school transportation. Otherwise, these children will be counted as regular students. Pupils who receive home-to-school transportation to attend schools other than their neighborhood schools because of requirements of their IEPs should also be counted as special education PTs. PT Function: PT factors are used only to allocate costs in Function 3600, Pupil Transportation. 19

20 PCR - PCRAF Forms (PCR) Form PCR—Program Cost Report The Program Cost Report, Form PCR, is based on the goal field and calculates, in a standardized manner, Fund 01 total costs by program (refer to Program Cost Accounting in CSAM). Form PCR is fully automated and does not allow for manual entry of data. Data pulled into the form are extracted from both the LEA's general ledger data and software-generated "Object PCRA" adjusting entries created from Form PCRAF data. Form PCR displays data by goal and consists of the Program Cost Report and four supporting schedules: · The Program Cost Report summarizes direct (e.g., direct-charged and allocated) and central administration costs by goal. It also displays as "Other Costs" those expenditures with functions not already picked up in the specific goal lines. · Schedule of Direct Charged Costs (DCC) details the costs of instruction, ancillary service, and community service functions, which must always be direct-charged to a goal, and also any support function costs that have been direct-charged to a goal. · Schedule of Allocated Costs (AC) details Undistributed costs (goals 0000 and 9000) allocated to specific goals based on allocation factors (see Form PCRAF for allocation factors). · Schedule of Central Administration Costs (CAC) calculates the ratio used to distribute central administration costs in Column 4 of Form PCR. This ratio is similar to, but not exactly the same as, an indirect cost rate (see Form ICR for the indirect cost rate). · Schedule of Other Costs (OC) displays the costs direct-charged to functions 3700 (Food Services), 6000 (Enterprise), 8500 (Facilities Acquisition and Construction), and 9000–9999 (Other Outgo). 20

21 PCR - PCRAF Forms (PCR continued) Five technical review checks relate to Form PCR data: · The first two checks look at goal by function combinations: one to verify that expenditures in the function ranges of 1000s, 4000s, and 5000s are associated with specific goals and one to verify that expenditures in functions 7200–7700 are associated with appropriate goals. · The next check verifies that allocation factors have been entered in Form PCRAF for support functions with costs in Undistributed goals 0000 and · Another check identifies goals that have been allocated costs but that contain no direct costs. · The last check is to determine whether the total costs in Form PCR agree with total Fund 01 general ledger expenditures. If the expenditures in Form PCR do not balance to the general ledger data, completing the following checklist should bring them into balance: · Has Form PCRAF been completed and saved? You must provide allocation factors for all Form PCRAF columns that have costs on Line A. · Have all technical review checks with a Fatal exception been corrected? Fatal exceptions for invalid codes, goal by function combinations, or function by object combinations, must be corrected in order for Form PCR to balance. 21

22 SEMA-SEMB The following documents are a sample of the proposed SEMA form. The SEMA and SEMB documents are being revised and will be available after the SACS software for unaudited actuals are available. 22

23 Receivables – Payables (Receivables) QEIA backfill In , districts received a reduction of program funding in order for the state to improve their cash flow and meet their QEIA funding requirement. The state in return has set aside SFSF funds in which to backfill the loss in those programs. CDE has provided a spreadsheet identifying the SFSF entitlements. The column titled ABX3 56 is the column reflecting the QEIA backfill amounts. You will note that there is only a small amount to be received. (see attached) CDE has distributed these funds to date based on the amount of expenditures reported through the cash management program. As districts close their books for , districts should have spent and received the majority of these funds and reported them to CDE. If there is a balance still due in 10-11, a receivable should be set up. These funds must be spent by September 30, 2011 and should be reported to CDE through the Cash management program. 23

24 Receivables – Payables (Receivables) Tier III flexible categorical programs Tier III categorical funds should be accounted for in under the proper unrestricted resources. There should be no special closing transactions for necessary. If districts encounter any issues, please give us a call. 5.81% Fair Share Reduction In , the state implemented another reduction in the amount of 5.81% of the districts prior year undeficited revenue limit. The reduction was implemented by CDE based on categorical allocations. (Please see attached report from CDE for the listing of programs reduced.) Districts should verify that the listed funds were reduced from the districts categorical allocations and that there are no more funds due to CDE. If CDE has yet to take back all identified funds, then an accounts payable should be prepared when closing the fiscal year. Also, the reduction should be coded against the revenue object that is being reduced. I.e.: 8011, 8311 or

25 Receivables – Payables Deferrals – There is discussion regarding deferrals and whether or not they should be accrued. Deferrals should be treated as receivables, however you should check with your independent auditors for the final determination. K-3 CSR – The Final CSR funds will be calculated based on the Form J7CSR filed May 13, 2011 and distributed in July. This apportionment also includes recoveries for the following overpayments: (See attached) – Per Section 35 of Chapter 724, Statutes of 2010, the K-3 CSR appropriation of funds deferred from to was cut from $570 million to $230million (a$340 million decrease). The cut was enacted subsequent to the July 2010 Final Apportionment, resulting in funds for the K-3 CSR Program being overspent by almost $50 million (after accounting for savings). CDE is proportionately reducing program entitlements and recovering funds accordingly. – through K-3CSR Program funds that were overpaid to school districts and charter schools based on submission of final or revised final claim forms. 25

26 ARRA/SFSF/ED Jobs Funds ARRA Title I, IDEA and SFSF funds must be spent by September 30, At the end of the fiscal year these resource codes will expire. Encumbrances are not considered obligations so plan on spending these funds by September 30. When carrying over these funds into the new year for the remaining 2 months, please be aware that the project year in SACS would be required when the funds are expended in the next fiscal year. Don’t forget to complete the Section 1512 Quarter ending June 30, 2011 report. ED Jobs Funds must be spent by September 30, 2012 When carrying over these funds into the new year, be aware that the project year in SACS would be required when the funds are expended in the next fiscal year. Ed Jobs funds are subject to Deferred Revenue. Ed jobs Funds are subject to the cost principles of AMB Circular A-87. Districts should ensure that employees funded by Ed Jobs meet the compliance requirements and maintain supporting documentation.

27 GASB 54 LEA’s are required to implement GASB 54 with the financial statements dated June 30, The SACS software will not include the GASB reporting requirements in the Unaudited Actuals, however a crosswalk for the reporting in the financial statements will be necessary and should be available for your auditors. 27

28 Year End Checklist A Year End Closing checklist is provided on the Business website under Business Forms. A copy is also provided in the Year End Closing binder. A Year End Closing Schedule is provided in the Year End Closing binder. A QSS/QCC Year End procedures guide is provided in the Year End Closing binder. A Data Processing Sequence list from SACS for your ease of use in working with dependency checks on the TRC is provided in the Year End Closing binder. 28


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