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WASBO New School Administrators & Business Support Staff Workshop August, 2007 Wisconsin Department of Public Instruction ACCOUNTING TRANSACTIONS.

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Presentation on theme: "WASBO New School Administrators & Business Support Staff Workshop August, 2007 Wisconsin Department of Public Instruction ACCOUNTING TRANSACTIONS."— Presentation transcript:

1 WASBO New School Administrators & Business Support Staff Workshop August, 2007 Wisconsin Department of Public Instruction ACCOUNTING TRANSACTIONS

2 WUFAR 101 WUFAR 101 Wisconsin Uniform Financial Accounting Requirements It is a multi-dimensional reporting system that can also be used as an accounting system Not required accounting, but required reporting Always used in conjunction with the Budget and Annual Reports Download off website

3 WUFAR Account Format Fund Location Object/ Function Program/ Source Project XX XXX XXX XXXXXX XXX Most of the commercial software used in districts will display account codes in this order. In DPI reporting you will see the function number preceding the object or source. DPI reporting does not require location detail.

4 Wisconsin Uniform Financial Accounting Requirements - cont. Code numbers are arranged in hierarchical order. A zero (0) in any position of a code represents a total of more detailed account codes. The following is an example of a hierarchy in the source dimension: Fund Function Description 10R Taxes 10R Payment for Services 10R Non-Capital Sales 10R School Activity Income 10R Earnings on Invest 10R Other Local Sources 10R Total Local Revenue

5 Wisconsin Uniform Financial Accounting Requirements – cont Code numbers are arranged in hierarchical order. A zero (0) in any position of a code represents a total of more detailed account codes. The following is an example of a hierarchy in the expenditure dimension: Fund Function Description 10E Salaries 10E Employee Benefits 10E Purchased Services 10E Non-Capital Objects 10E Capital Objects 10E Other Objects 10E Total Regular Curriculum

6 FUND: A fiscal and accounting entity with a self-balancing set of accounts…which are segregated for the purpose of carrying on specific activities in accordance with special regulations, restrictions, or limitations A fiscal and accounting entity with a self-balancing set of accounts…which are segregated for the purpose of carrying on specific activities in accordance with special regulations, restrictions, or limitations

7 FUND STAND ALONE ACCOUNTING ENTITY BALANCE SHEET, REVENUES AND EXPENDITURES FOR EACH FUND WITHIN FUND, “DEBITS” MUST EQUAL “CREDITS” (the fund must be self- balancing) CHANGE IN FUND BALANCE EQUALS DIFFERENCE BETWEEN FUND REVENUES AND EXPENDITURES

8 FUND ENDING FUND BALANCE MINUS BEGINNING FUND BALANCE = REVENUES MINUS EXPENDITURES MORE REVENUES THAN EXPENDITURES MEANS MORE FUND BALANCE AT END OF YEAR

9 GENERAL FUND FUND 10 FINANCIAL TRANSACTIONS RELATING TO CURRENT OPERATIONS NOT REQUIRED TO BE ACCOUNTED FOR IN OTHER FUNDS

10 SPECIAL PROJECTS FUNDS FUND 21 GIFTS AND DONATIONS RECEIVED FROM PRIVATE PARTIES THAT CAN BE USED FOR DISTRICT OPERATIONS FUND 23 ANY REMAINING TEACH FUND BALANCE BEING USED TO MAKE PAYMENTS ON A TEACH LOAN FUND 27 SPECIAL EDUCATION AND RELATED SERVICES FUNDED WHOLLY OR IN PART WITH STATE OR FEDERAL SPECIAL EDUCATION AID FUND 29 SPECIAL REVENUE K-12 INSTRUCTIONAL PROGRAMS NOT REQUIRED TO BE REPORTED IN OTHER SPECIAL REVENUE FUNDS

11 DEBT SERVICE FUNDS FUND 38 Repayment of debt issues that were either; not authorized by school board resolution before August 12, 1993, or incurred without referendum approval after that date. FUND 39 Repayment of debt issues that were either; authorized by school board resolution before August 12, 1993, or approved by referendum.

12 CAPITAL PROJECTS FUNDS FUNDS 41, 48 AND 49 RECORDING EXPENDITURES FINANCED THROUGH BONDS, PROMISSORY NOTES, STATE TRUST FUND LOANS, LAND CONTRACTS OR TAX LEVY (EXPANSION FUND OR TIF )

13 FOOD SERVICE FUNDS FUND 50 ACCOUNT FOR THE DISTRICT’S FOOD SERVICE ACTIVITIES ACTIVITIES RELATING TO PUPIL AND ELDERLY FOOD SERVICE ACTIVITIES

14 AGENCY FUND FUND 60 ACCOUNT FOR ASSETS HELD BY THE DISTRICT FOR PUPIL ORGANIZATIONS. ONLY BALANCE SHEET ACCOUNTS FOR THIS FUND ARE REPORTED IN THE BUDGET AND ANNUAL REPORTS.

15 TRUST FUNDS ASSETS HELD BY THE DISTRICT IN A TRUSTEE CAPACITY FOR INDIVIDUALS, PRIVATE ORGANIZATIONS, OTHER GOVERNMENTS AND/OR OTHER FUNDS FUND 72 ACCOUNTS FOR GIFTS AND DONATIONS SPECIFIED FOR THE BENEFIT OF PRIVATE INDIVIDUALS AND ORGANIZATIONS NOT UNDER THE CONTROL OF THE SCHOOL BOARD FUND 73 ACCOUNTS FOR RESOURCES HELD IN TRUST FOR FORMALLY ESTABLISHED DEFINED BENEFIT PENSION PLANS, DEFINED CONTRIBUTION PLANS OR EMPLOYEE BENEFIT PLANS FUND 76 ACCOUNTS FOR NON-DISTRICT PORTION OF INVESTMENT POOL SPONSORED BY THE DISTRICT

16 COMMUNITY SERVICE FUNDS FUND 80 ACTIVITIES WHERE THE PRIMARY FUNCTION IS TO SERVE THE COMMUNITY AND ARE OUTSIDE THE REGULAR AND EXTRACURRICULAR PROGRAMS FOR STUDENTS

17 PACKAGE AND COOPERATIVE PROGRAM FUNDS MULTIDISTRICT PROJECTS FOR WHICH IT IS NECESSARY TO KEEP A SEPARATE RECORD OF ACTIVITY SO THAT PARTICIPANT DISTRICTS’ SHARE CAN BE DETERMINED FUND 91 EXPENDITURES MADE BY A HOST DISTRICT FOR PROGRAMS MADE AVAILABLE TO OTHER DISTRICTS THROUGH A CESA FUND 93 CONSORTIA PROGRAMS FUNDED WITH LOANS FROM THE TEACH WISCONSIN BOARD FUND 99 ALL OTHER TYPES OF COOPERATIVE INSTRUCTIONAL FUNDS- NEVER REPORT SPECIAL EDUCATION

18 SOURCE & OBJECT The Source dimension is used to classify revenues and other fund sources by their origins. The Object dimension is used to identify the service or commodity used in accomplishing a function.

19 REVENUE SOURCES REVENUE CODING: 2 QUESTIONS “WHO’S PAYING THE MONEY?” “WHAT IS IT FOR?”

20 REVENUE CODING SOURCE CODES LOCAL (SOURCE 200) A WI DISTRICT (SOURCE 300) DISTRICT OUTSIDE WI (SOURCE 400 ) INTERMEDIATE EDUCATIONAL AGENCY (SOURCE 500) STATE AGENCY (SOURCE 600) FEDERAL AGENCY (SOURCE 700) OTHER FINANCING (SOURCE 800) OTHER REVENUES (SOURCE 900)

21 EXPENDITURE OBJECTS NORMAL RULE: EXPENDITURES ARE CHARGED TO THE FISCAL PERIOD WHEN THE SERVICES ARE PROVIDED, SUPPLIES ARE USED OR EQUIPMENT IS ACQUIRED.

22 OBJECT CODING OBJECT CODING MOST-USED OBJECT CODES – – Salaries (100 Objects) – – Fringe Benefits (200 Objects) – – Purchased Services (300 Objects) – – Non-Capital Objects (400 Objects) – – Capital Objects (500 Objects) – – Debt Retirement (600 Objects)

23 FUNCTION CLASSIFICATION FUNCTION DESCRIBES THE PURPOSE FOR WHICH A SERVICE OR MATERIAL OBJECT IS ACQUIRED. Reporting to DPI is at the 2 or 3- digit function level, but local districts can use more detail for tracking expenditures.

24 FUNCTIONAL CODING THE QUESTION TO ANSWER: Which defined purpose caused the revenue or expense to be incurred???

25 Defined Purposes: (AKA: FUNCTIONS) – – Instructional (100000) limited to activities between students and teaching staff – – Support Services (200000) administrative, technical & logistical support to both instructional and non-instructional programs – – Community Services (300000) – – Non-Program Trans. (400000)purchased instructional services,, interfund transfers, open enrollment tuition are included here – – District-Wide (500000)used only with revenue sources

26 General Ledger Fund 10 Fund 20 Fund 30 Fund 40 Fund 50 Other Funds Addendas Debt Service Amort. Schedules 08 Debt table. Budget/ Annual Report to DPI Special Ed. Claim Fund 27 ORGANIZATION OVERVIEW

27 RESOURCES WUFAR link located at: WUFAR link located at:

28 PROPERTY TAX LEVIES

29 LEVIES INTO FUND 10, 38, 39, 41, 80 LEVIES INTO FUND 10, 38, 39, 41, 80 THE TOTAL LEVY IS REVENUE THE TOTAL LEVY IS REVENUE SOURCE 211 – CURRENT LEVY SOURCE 211 – CURRENT LEVY SOURCE 212 – CHARGEBACK LEVY (FUND 10 ONLY) SOURCE 212 – CHARGEBACK LEVY (FUND 10 ONLY) TAXES RECEIVABLE AT JUNE 30 TAXES RECEIVABLE AT JUNE 30

30 DEBT SERVICE TAX LEVY Levy for the calendar year - budget for the fiscal year ending June 30 Levy for the calendar year - budget for the fiscal year ending June 30 Example: Example: LT Debt Payments Due (principal & interest) October, 2007$101,000 March, 2008$502,000 October, 2008$ 98,000 Levy in November, 2007 ($502,000 + $98,000) Budget for ($101,000 + $502,000)

31 PROPERTY TAX REFUNDS USUALLY PAYMENT TO MUNICIPALITY FOR UNCOLLECTED PERSONAL PROPERTY TAXES USUALLY PAYMENT TO MUNICIPALITY FOR UNCOLLECTED PERSONAL PROPERTY TAXES FUND 10 FUNCTION OBJECT 972 FUND 10 FUNCTION OBJECT 972 (10 E ) COLLECTION OF REFUND COLLECTION OF REFUND FUND 10 SOURCE 972 (10 R ) FUND 10 SOURCE 972 (10 R ) SOURCE 212 LEVY – NET PAYMENTS* SOURCE 212 LEVY – NET PAYMENTS* OPTIONAL OPTIONAL NOT NEGATIVE NOT NEGATIVE *object 972 minus source 972

32 PROPERTY TAX REFUNDS (cont’d) ONLY LEVY FOR UNCOLLECTED TAXES PAID OR HAVE BEEN BILLED BY THE MUNICIPALITY AND YOU INTEND TO PAY THEM ONLY LEVY FOR UNCOLLECTED TAXES PAID OR HAVE BEEN BILLED BY THE MUNICIPALITY AND YOU INTEND TO PAY THEM OVER LEVY RESULTS IN TAXING WITHOUT PROPER AUTHORIZATION OVER LEVY RESULTS IN TAXING WITHOUT PROPER AUTHORIZATION

33 SOURCE/OBJECT 971/972 Source/Object 971 “Refund of Prior Year Expense” Source/Object 971 “Refund of Prior Year Expense” E-Rate Refunds, Insurance Refund, CESA Refund, Dividend’s on Worker’s Compensation Source/Object 972 “Property Tax and Equalization Aid Refund” Source/Object 972 “Property Tax and Equalization Aid Refund” Property Tax Refund, Equalization Aid Refund, Taxpayer Levy Refund, Special DPI Approved Amount

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35 STATE AND FEDERAL AID

36 ENTITLEMENTS ENTITLEMENTS MOST BIG $ PROGRAMS MOST BIG $ PROGRAMS GENERAL AID, SPECIAL EDUCATION,TRANSPORTATION,SAGE GENERAL AID, SPECIAL EDUCATION,TRANSPORTATION,SAGE REVENUE WHEN $ APPROPRIATED REVENUE WHEN $ APPROPRIATED REIMBURSABLE GRANTS REIMBURSABLE GRANTS “GRANT” PROGRAMS “GRANT” PROGRAMS CLAIMED ON PI 1086, SOURCE 630/730 CLAIMED ON PI 1086, SOURCE 630/730 REVENUE WHEN REIMBURSABLE EXPENDITURE OCCURS REVENUE WHEN REIMBURSABLE EXPENDITURE OCCURS

37 ACCOUNTING FOR DELAYED EQUALIZATION AID PAYMENT

38 Cash $1,496,409 10E ,882 10R 621$1,504,684 10R ,607 Receivable $ 72,291 10R 621$ 72,291

39 Grant Receivables When a grant reimbursement claim is submitted BEFORE the end of the fiscal year, but the actual cash won’t be received until AFTER the start of the new fiscal year, a grant receivable needs to be booked in the ledger.

40 Grant Receivables Why do it this way? In accrual accounting, revenue is recognized when it is earned. By submitting the reimbursement claims in June, the district “earns” the money in the school year, so the claims need to be booked as revenue in 06-07; however, since the actual cash will not come until the school year, a receivable is used to account for the expected cash.

41 Grant Receivables Example: Title I-A reimbursement claim for $26,493 is completed and sent to DPI on June Entry When the Cash Comes: Debit 10B Cash$26,493 (increase) Credit 10B Due from Oth Gov’nts $26,493 (decrease) Credit 10B Due from Oth Gov’nts $26,493 (decrease) (So, revenue is not effected at all by this transaction, which is what we want because this amount was already booked as revenue in 06-07!) EOY Adjusting Entry (both increases): Debit 10B Due from Oth Gov’nts$26,493 Credit 10R IASA Title 1 $26,493 Credit 10R IASA Title 1 $26,493

42 Grant Receivables July 1, 2006 July 1, 2007 July 1, 2006 July 1, 2007 ✔ Submit grant claims. ✔ Book revenue in appropriate Source and end-of-year receivable in ✔ Submit grant claims. ✔ Book revenue in appropriate Source and end-of-year receivable in Receive cash early in fiscal year (shows up on aids register) Revenue should equal the Aids Register amount minus the beginning-of-the-year receivables (05-06 revenue) plus the end-of-year receivables (06-07 revenue). Aids register is available at: Receive cash early in fiscal year (shows up on aids register)

43 DEBT

44 CASH FLOW BORROWING GENERAL FUND TRANSACTION GENERAL FUND TRANSACTION BALANCE SHEET TRANSACTION FOR PRINCIPAL BALANCE SHEET TRANSACTION FOR PRINCIPAL INTEREST EXPENSE – ACCRUAL AT JUNE 30 INTEREST EXPENSE – ACCRUAL AT JUNE 30 INTEREST REVENUE INTEREST REVENUE IN FUND PRODUCING INCOME IN FUND PRODUCING INCOME INTEREST RECEIVABLE AT JUNE 30 INTEREST RECEIVABLE AT JUNE 30

45 CASH FLOW BORROWING (cont’d) Accounting transactions: Accounting transactions: Dr. Cash$1,000,000 Dr. Cash$1,000,000 Cr. Temporary Notes Payable $1,000,000 Cr. Temporary Notes Payable $1,000,000 (Acct. 10B ) (Acct. 10B ) Dr. Interest Expense $ 40,000 Dr. Interest Expense $ 40,000 (10E ) (10E ) Cr. Interest Payable $ 40,000 Cr. Interest Payable $ 40,000 (10B ) (10B )

46 CAPITAL LEASE “BORROWING” FROM A VENDOR TO ACQUIRE ITEM “BORROWING” FROM A VENDOR TO ACQUIRE ITEM JOURNAL ENTRY TO RECORD FINANCING TRANSACTION JOURNAL ENTRY TO RECORD FINANCING TRANSACTION PRINCIPAL AND INTEREST PAYMENT TRANSACTIONS AS PAYMENTS ARE MADE (object 678/688, function ) PRINCIPAL AND INTEREST PAYMENT TRANSACTIONS AS PAYMENTS ARE MADE (object 678/688, function )

47 Long-Term Debt If used for acquiring capital assets, receipted into Capital Projects Fund & expended out of there If used for acquiring capital assets, receipted into Capital Projects Fund & expended out of there Capital items include buildings, equipment, books Capital items include buildings, equipment, books General Fund? – highly unlikely but can be used if for operational purposes—must notify DPI General Fund? – highly unlikely but can be used if for operational purposes—must notify DPI

48 BOND ANTICIPATION NOTES OFTEN TAKEN OUT PRIOR TO RECEIVING PROCEEDS OF “PERMANENT” DEBT ISSUANCE OFTEN TAKEN OUT PRIOR TO RECEIVING PROCEEDS OF “PERMANENT” DEBT ISSUANCE WHEN RECEIVED CREDIT “LOANS” SOURCE 873 – CAPITAL PROJECTS FUND WHEN RECEIVED CREDIT “LOANS” SOURCE 873 – CAPITAL PROJECTS FUND INTEREST PAYMENTS ON BANS – DEBT SERVICE FUND – TRANSFER IN OR LEVY INTEREST PAYMENTS ON BANS – DEBT SERVICE FUND – TRANSFER IN OR LEVY

49 DEBT REFINANCING INCUR NEW DEBT AND USE PROCEEDS TO “PAY OFF” EXISTING DEBT INCUR NEW DEBT AND USE PROCEEDS TO “PAY OFF” EXISTING DEBT “PAY OFF” MAY INCLUDE PAYMENT OF NEW DEBT PROCEEDS TO ESCROW AGENT “PAY OFF” MAY INCLUDE PAYMENT OF NEW DEBT PROCEEDS TO ESCROW AGENT TAKES PLACE IN DEBT SERVICE FUND TAKES PLACE IN DEBT SERVICE FUND CONTACT DPI FOR ASSISTANCE WITH RECORDING CONTACT DPI FOR ASSISTANCE WITH RECORDING

50 WHAT HAPPENS IF DEBT SERVICE EXPENDITURES ARE CODED INCORRECTLY ? SHARED COST MAY BE CALCULATED INCORRECTLY, RESULTING IN WRONG AID BEING PAID TO DISTRICT SHARED COST MAY BE CALCULATED INCORRECTLY, RESULTING IN WRONG AID BEING PAID TO DISTRICT DISTRICT’S ANNUAL REPORT DEBT TABLE WILL NOT RECONCILE FROM BEGINNING TO END OF YEAR DISTRICT’S ANNUAL REPORT DEBT TABLE WILL NOT RECONCILE FROM BEGINNING TO END OF YEAR

51 Reporting District Long-Term Debt Districts are now required to notify DPI via the reporting portal any changes in their long- term debt repayment schedules Districts are now required to notify DPI via the reporting portal any changes in their long- term debt repayment schedules Prepayments of principal, refinancings, new loans will require adjustments by district Prepayments of principal, refinancings, new loans will require adjustments by district Updating of online debt schedules can be done at any time during the year Updating of online debt schedules can be done at any time during the year

52 Reporting District Long-Term Debt Debt amortization schedules must be entered as part of Annual Report submission process if not updated previously Debt amortization schedules must be entered as part of Annual Report submission process if not updated previously Reporting via DPI portal Reporting via DPI portal https://www2.dpi.state.wi.us/safr/ https://www2.dpi.state.wi.us/safr/ https://www2.dpi.state.wi.us/safr/

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58 Reporting District Long-Term Debt Be sure that the function , , , principal and interest amounts used in your general ledger agree to debt schedules Be sure that the function , , , principal and interest amounts used in your general ledger agree to debt schedules

59 PAYROLL

60 PAYROLL ITEMS ACCRUAL AT JUNE 30 FOR EMPLOYEE SERVICES PROVIDED ACCRUAL AT JUNE 30 FOR EMPLOYEE SERVICES PROVIDED SALARIES SALARIES RELATED BENEFITS RELATED BENEFITS INCLUDES “SUMMER PAYROLLS” INCLUDES “SUMMER PAYROLLS” NO ACCRUAL FOR POST-EMPLOYMENT BENEFITS NO ACCRUAL FOR POST-EMPLOYMENT BENEFITS SPECIFIC RULES FOR UNSETTLED CONTRACTS SPECIFIC RULES FOR UNSETTLED CONTRACTS

61 UNSETTLED EMPLOYEE CONTRACTS If mediation/arbitration when filing report—lowest offer is recorded If mediation/arbitration when filing report—lowest offer is recorded If settlement occurs after filing report but before October 1, amend report to show increased cost If settlement occurs after filing report but before October 1, amend report to show increased cost Settlement occurs after October 1— additional cost is reported in year settlement occurs Settlement occurs after October 1— additional cost is reported in year settlement occurs

62 COMPENSATED ABSENCES Compensated absences are generally in the form of vacation, sick leave or earned “comp” time. No expenditure is recognized on the books of the District when the absence is earned and accumulated. Rather, compensated absences are accounted for as expenditures in the fiscal period in which they are paid. It is accounted for in the same manner as the regular wage paid for the pay period. If compensated absences are paid by lump-sum settlement to a former employee, they should be accounted for under function , object 290 “Other Employee Benefits”.

63 SPECIAL EDUCATION

64 Fund 27 Fund 27 is where revenues & expenses related to special ed are recorded. Fund 27 acts like a “sub fund” to Fund 10 (general operations). Fund 10 must always make a balancing entry in the form of a transfer to Fund 27 at the end of the year. Fund 27 must have a “0” ending fund balance.

65 Fund 27 - What’s up with that?? Fund 27 identifies Special Education Costs. A portion of these eligible costs are reimbursed with a categorical aid. A categorical aid is State aid that is intended for a specific purpose.

66 MEDICAID “SBS” SERVICES PROVIDED TO CHILDREN WITH DISABILITIES (SPECIAL EDUCATION) COST IN SPECIAL EDUCATION FUND (27) REVENUE IN GENERAL FUND (10) CANNOT CHARGE MEDICAID COSTS AGAINST FEDERAL GRANT FUNDS NOT A DEDUCTIBLE FOR STATE CATEGORICAL SPECIAL ED

67 SPECIAL EDUCATION PROGRAMS Many different types of special education programs Many different types of special education programs PROGRAM OPERATED BY THE DISTRICT (DISTRICT EMPLOYS PERSONNEL) PROGRAM OPERATED WITH A CONSORTIUM OF SCHOOLS PROGRAM OPERATED BY CESA PROGRAM OPERATED BY CCDEB Costs funded by a combination of state, local and federal dollars Costs funded by a combination of state, local and federal dollars

68 COOPERATIVE AGREEMENT

69 MULTIDISTRICT PROJECTS WITH COOP AGREEMENT ONE DISTRICT ACTS AS FISCAL AGENT MAINTAIN REVENUE AND EXPENDITURE RECORDS FISCAL AGENT AGREEMENT STRONGLY ENCOURAGED IDENTIFIES RESPONSIBILITIES OF BOTH THE FISCAL AGENT AND INDIVIDUAL GRANT RECIPIENTS

70 COOP TRANSACTION CODING FISCAL AGENT AGREEMENT:

71 COOP TRANSACTION CODING (Cont.) FUND 99 FUND 99 OTHER THAN SPECIAL EDUCATION REVENUES MUST EQUAL EXPENDITURES COST PRORATED TO PARTICIPATING DISTRICTS FISCAL AGENT PORTION TRANSFERRED FROM FUND 10

72 FUND 27 COOP TRANSACTION CODING FUND 27 MULTIDISTRICT PROGRAM FOR SPECIAL EDUCATION FISCAL AGENT DISTRICT INCURS ALL EXPENDITURES MUST HIRE STAFF FISCAL AGENT DISTRICT BILLS PARTICIPATING DISTRICTS FOR TOTAL COST OF PROGRAM

73 COOP TRANSACTION CODING (Cont.) FUND 27 FISCAL AGENT DISTRICT FILES CATEGORICAL AID CLAIM SPECIAL EDUCATION AID RECEIVED BY FISCAL AGENT DISTRICT FISCAL AGENT DISTRIBUTES AID TO PARTICIPATING DISTRICTS FISCAL AGENT PORTION REMAINS IN FUND 27

74 PURCHASED INSTRUCTIONAL SERVICES (FUNCTION ) INSTRUCTIONAL SERVICES PROVIDED RESIDENT DISTRICT BY OTHER ENTITIES INSTRUCTIONAL SERVICES PROVIDED RESIDENT DISTRICT BY OTHER ENTITIES LINKED WITH A 300 “PURCHASE SERVICE” OBJECT LINKED WITH A 300 “PURCHASE SERVICE” OBJECT NON-INSTRUCTIONAL SERVICES CHARGED TO APPROPRIATE FUNCTION WITH 300 OBJECT NON-INSTRUCTIONAL SERVICES CHARGED TO APPROPRIATE FUNCTION WITH 300 OBJECT

75 OTHER ISSUES

76 FUND 21 - GIFTS Gifts specified by donor to be used for operating purposes (playground equipment, school nurse, beautification of grounds) Gifts specified by donor to be used for operating purposes (playground equipment, school nurse, beautification of grounds) Includes both expendable and non- expendable portion Includes both expendable and non- expendable portion tml tml tml tml

77 COMMODITIES Obtained from the commodity internet system at: Obtained from the commodity internet system at: The total value of commodities received is in the CARS Report and is labeled “Total Value Received: Entitlement, Bonus, DoD, and Cheese Processing.” The total value of commodities received is in the CARS Report and is labeled “Total Value Received: Entitlement, Bonus, DoD, and Cheese Processing.” Year end entry: Year end entry: Debit Function , Object 410 Debit Function , Object 410 Credit Source 714 Credit Source 714

78 COMMODITY HANDLING CHARGES Aids register – Federal food service aid is reported at gross amount Commodity handling charge is reported as a negative amount (titled 714) Accounting – Federal Food Service Aid – Source 717 Commodity Handling Charge – Function , Object 387

79 AGENCY FUND 60 Student organizations and clubs Student organizations and clubs Students manage activities and faculty advisor approves transactions Students manage activities and faculty advisor approves transactions District acts as agent maintaining records and accounting for activity District acts as agent maintaining records and accounting for activity School Board responsible for establishment and enforcement of policies and procedures to safeguard agency assets School Board responsible for establishment and enforcement of policies and procedures to safeguard agency assets District may establish agency fund for parent organizations District may establish agency fund for parent organizations Guidance on developing policies and procedures Guidance on developing policies and procedures

80 FUND 73 EMPLOYEE BENEFIT TRUST FUND Resources held in trust for formally established defined benefit pension plans, defined contribution plans, or employee benefit plans. Such plans must be legally established in accordance with state statutes, federal laws and IRS requirements. Specific requirements for use of this fund have been established by the DPI at: trust_fund.html trust_fund.html

81 FUND 73 EMPLOYEE BENEFIT TRUST FUND Must have on file with DPI: Must have on file with DPI: Actuary study or allowed alternative method Board minutes approving establishment of a trust Trust agreement Legal opinion on the trust

82 FUND 73 EMPLOYEE BENEFIT TRUST FUND Trust must be irrevocable Trust must be irrevocable Contribution to the trust must be used for purpose trust is established Contribution to the trust must be used for purpose trust is established Reported as an expenditure by district and is included in shared cost Reported as an expenditure by district and is included in shared cost

83 SALE OF SCHOOL PROPERTY Statute (12) states that the school board has the power to “authorize the sale of any property belonging to and not needed by the school district. Generally recorded in Fund 10 under source 860 District may choose to place the revenue in another fund but only if so designated at the district’s annual meeting

84 SELF FUND HEALTH BENEFITS DISTRICT SELF FUNDS HEALTH/DENTAL BENEFITS DISTRICT SELF FUNDS HEALTH/DENTAL BENEFITS PRIVATE PLAN ADMINISTRATOR USUALLY INVOLVED PRIVATE PLAN ADMINISTRATOR USUALLY INVOLVED PREMIUM EQUIVALANCY USED FOR BUDGETING/COSTING PREMIUM EQUIVALANCY USED FOR BUDGETING/COSTING FINAL REPORTED EXPENDITURES MUST BE ACTUAL COST FOR FISCAL YEAR – INCLUDING IBNR COSTS FINAL REPORTED EXPENDITURES MUST BE ACTUAL COST FOR FISCAL YEAR – INCLUDING IBNR COSTS

85 SELF-FUNDED HEALTH BENEFITS SERIES OF GENERAL FUND BALANCE SHEETS ACT AS “INSURANCE COMPANY” SERIES OF GENERAL FUND BALANCE SHEETS ACT AS “INSURANCE COMPANY” LIABILITY ACCOUNT VS RESERVED FUND BALANCE LIABILITY ACCOUNT VS RESERVED FUND BALANCE 5% ADJUSTMENT ACCOUNT 5% ADJUSTMENT ACCOUNT SOURCE/OBJECT 965 SOURCE/OBJECT 965

86 QUESTIONS? School Finance Auditors Kathy Guralski - (608) Gene Fornecker - (608) Natalie Rew - (608)


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