FY 2011–12 F-196 Update Ramona Garner Supervisor, School District/ESD Financial Reporting (360)

AGENDA 1.Important dates to remember. 2.Walk-through of the F-196 noting resource links, general information, and changes for 2011–12 reporting. 3.General where/what reports are available from the F-196 files. 4.Questions? Comments? 2

FY 2011–12 F-196 Update 3

The dates below have not changed. Please make a note of these dates now, 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 below listed dates easier for you. Final Action DateAction October 25 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 25 due date may request a waiver by or written notice to the ESD. November 1ESDs - Final date for the ESD to review and forward the certification page back to the school district for signature. November 8School Districts - The signed certification page is due from the school district to the ESD. November 15ESDs - Final date the signed certification page by the ESD is due at OSPI, School Financial Services. 4

FY 2011–12 F-196 Update 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. 5

Special Notes If your district will not be able to meet the November 15, 2012 deadline due to unusual or special circumstances, an extension must be requested in writing. Direct your request to T.J. Kelly at: Districts that have a wavier letter for their number of days of operation should submit a copy either via or regular mail to Ramona Garner at OSPI. If a district has exceeded its budget appropriation, the district will need to submit a letter of explanation with their F-196 document. 6

FY 2011–12 F-196 Update 7 The F-196 Process is completed in the EDS platform. If you have not accessed the EDS platform, contact your ESD for assistance.

FY 2011–12 F-196 Update If you run into difficulty when attempting to send an F-196 file to OSPI, please contact your districts vendor. After your file has been uploaded into the EDS system, you would then call OSPI if you experience difficulties. 8

FY 2011–12 F-196 Update Chapter VI of the ABFR has up-to-date information that you may find useful such as: Frequently Asked Questions with Answers. The F-196 Printed Document with Item Numbers. Edits for F-196. F-196 Item Number Dictionary. 9

FY 2011–12 F-196 Update You can find the SAFS F-196 User Manual in EDS under the Info Center tab. Here you will find useful step-by-step information. Appendix 2 of the manual gives you a chart that shows you which screens must be manually input and which will be prepopulated if you import data from an external source. 10

FY 2011–12 F-196 Update 11

FY 2011–12 F-196 Update Below you can see the selection to access the F-196. The reports do not have sequential page numbers. When you call for assistance please refer to the name of the report, not the page number on the report. 12

FY 2011–12 F-196 Update There are no changes to the Certification Page. When printing the Certification Page for signatures check the bottom of the page for the lock date. Certification Pages will not be accepted at OSPI without a lock date. Save your entries often throughout your F-196 process. 13

FY 2011–12 F-196 Update After you make your entries on any of the pages in EDS, hit the save button and then save and return once you have completed all entries for the particular page you are on. Do not hit your browsers back button. 14

FY 2011–12 F-196 Changes and Additions Several changes were made as described in Bulletin No The following items have been removed: Program 63 Promoting Academic Success. Revenue Account 4163 and 7163 Promoting Academic Success. Revenue Account 4175 Professional Development. Changed the name of Activity code group 30 to Instructional Support. Added Activity code 31 – Instructional Professional Development. Added Activity code 32 – Instructional Technology, to all programs except Programs 97, 98, and

FY 2011–12 F-196 Changes and Additions In the Capital Projects Fund: Type code 35 Instructional Technology was added. The name of Type code 60 was changed to Bond/Levy Issuance. The name of Type code 61 was changed to Bond/Levy Issuance and/or Election. 16

FY 2011–12 F-196 Changes and Additions In the Transportation Vehicle Fund, Expenditure Type codes were added: 30 Equipment : 33 – Transportation Equipment Purchase. 34 – Transportation Equipment Major Repair. 60 Bond/Levy Issuance: 61 Bond/Levy Issuance and/or Election. 90 Debt 91 – Principal. 92 – Interest. 93 –Arbitrage Rebate. 17

FY 2011–12 F-196 Changes and Additions On The Data Requirements for Supplemental Reports, the entry for Learning Improvement Days, item 202, was removed. Under RCW 28A , districts must certify that they have spent funds provided for cost-of-living increases on salaries and salary-related benefits. You must enter item number 160Education Jobs Funds (EduJobs). On the Data Requirements for End-of-Year Reporting to Apportionment and State Recovery Rate Report, the entry for Teacher Assistance Program, item 194, was removed. The title of Schedule of Long-Term Debt report has been changed to Schedule of Long-Term Liabilities. 18

FY 2011–12 F-196 Changes and Additions On the Resource to Program Expenditure Report, Program 34 was moved to the Basic Education Totals below Program

FY 2011–12 F-196 Update 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. 20

FY 2011–12 F-196 Update What is a distorting item? Distorting items are activities that do not occur regularly each year; that is, they distort the regular expenditures. Districts will need to determine and document expenditures they consider significant and distorting. Manual entries are required. This data is used in the Federal Restricted and Unrestricted Indirect Rate. 21

FY 2011–12 F-196 Update Distorting items-manual entries (cont.) What is considered significant? Districts have to individually answer this question. What happened during the school year in your district that distorts your expenditures? Normally this would be something unusual or unexpected that does not happen in the normal operation of your district that inflated your expenditures for the year. This amount could be $5,000 or $35,000 depending on the size of your district. 22

FY 2011–12 F-196 Update Distorting Items-manual entries (cont.) Flow-through grants are awards received by a school district and passed through to another district. If the grant amount is $100,000, and the district passes $25,000 to another district, the amount of flow-through is $25,000. Although the federal language includes contingencies as a distorting item, they are generally not applicable to school districts. Election expenses charged to Program 97, Activity 11 are considered distorting if they are significant. 23

FY 2011–12 F-196 Update Distorting Items-manual entries (cont.) Renovations and alterations may be considered distorting if the expenditures are unusual, unexpected, significant, and distort the districts normal expenditures. For example: The winter wind storms damaged the roof on a building. If the repairs were expended in the General Fund, the cost to renovate the building distorts the normal district expenditures. These expenditures may be considered distorting. Do not include Capital Outlay (Object. 9). 24

FY 2011–12 F-196 Update 25 Distorting Items-manual entries (cont.) Fines and penalties assessed against the district by L&I, OSHA, WISHA, or IRS fees for filing late payroll taxes may be considered distorting if significant. Late fees associated with Accounts Payable are not considered a fine or penalty.

FY 2011–12 F-196 Update What is an Indirect Cost Rate? An Indirect Cost Rate is a means of determining, in a reasonable manner, the percentage of allowable general management costs that benefit each federal program or activity. What is an Indirect Expenditure? Indirect costs (expenditures) are generally administrative costs such as the salaries and expenses for staff engaged in organization-wide (general) activities. 26

FY 2011–12 F-196 Update The Restricted and Unrestricted Federal Indirect Rate Calculations have not changed. The data on the left side at the bottom will display data from the 2009–10 F-196. This data is used in the calculation on the 2011–12 F-196 for rates you will use in 2013–14. Federal indirect rates are calculated to four decimal places. 27

FY 2011–12 F-196 Update 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. Do not include legal costs for any lawsuits, preparation of lawsuits, or negotiation expenses. 28

FY 2011–12 F-196 Update Indirect Expenditures-manual entries (cont.) Examples of allowable legal costs are: Review of insurance policy to determine if a claim should be reimbursed by the insurance company. Review of termination policy. Interpretation of bankruptcy rules when a vendor files bankruptcy. Do not enter student records for Information Systems. Only enter costs associated with fiscal systems (i.e., WSIPC fees, districtwide IT support). 29

FY 2011–12 F-196 Update Indirect Expenditures-manual entries Superintendent Costs: (item 348) If your district is small and your Superintendent and Superintendents secretary have multiple responsibilities related to Activity 13 or 14, or 72–75, an entry can be made in item 345. Large districts whose Superintendents responsibilities are 100% Activity 12 will not have an entry in this item number. Do not include Capital Outlay (Object 9). 30

FY 2011–12 F-196 Update Indirect Expenditures-manual entries (cont.) Public Relations Costs: (item 364) Activity 15 is used for the districts public relations. Any public relations costs associated with federal programs should be charged to Program 51 or 52. Public relations, to communicate or conduct general liaison and keep the public informed on matters of public concern, but not charged directly to a specific program, should be recorded in Program 97, Activity 15. Do not include costs designed solely to promote the governmental unit. If no entry is made in this item number, expenditures for public relations will NOT be included in the Indirect Pool. This will decrease the indirect rate. Do not include Capital Outlay (Object 9). 31

FY 2011–12 F-196 Update Indirect Expenditures-manual entries (cont.) Termination Leave: (item 365) Termination leave paid to federally supported staff upon resignation or discharge cannot be charged to a federal program. If the termination leave is coded to a local or state program, it may be considered an indirect expenditure. Coding the leave costs to Activity 13 or 14 ensures inclusion in the indirect pool and no entry would be necessary in this item number. 32

FY 2011–12 F-196 Update Indirect Expenditures-manual entries (cont.) Information Systems Costs: (item 370) Record costs for district-wide Information Systems, Program 97, Activity 72. Do not include expenditures for student records such as student records fees, software, or student records staff. If no entry is made in item number 370, expenditures for Information Systems will NOT be included in the Indirect Pool. This will decrease the indirect rate. Do not include Capital Outlay (Object 9). 33

Maintenance of Effort and Recovery and Carryover Templates The Federal Cross-Cutting and Special Education MOE tests are complete. The MOE templates have been updated and posted to our website under Training/Tools at Districts are encouraged to access these templates to run the MOE tests for mid-year and budget purposes and the 2011–12 recovery and carryover information. Chapter VI has been updated and posted to the ABFR along with the current item dictionary. 34

Other Notes of Interest 35 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 districts F-196 by OSPI does not affect the districts 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 districts F-196 and instructions for making revisions. Dont forget to copy your ESD when making a revision

Questions/Comments?? 36 Questions and comments are always welcome and appreciated. Whenever possible, ing your questions is beneficial in assuring that OSPI understands your question and allows a paper trail for OSPI and the district if the question should arise again.