WASBO 2015 Denise Wolff, Director School Finance, Capital Region ESD 113 Ramona Garner, Supervisor School District/ESD Financial Reporting, OSPI

 The F-196 is a required financial report submitted by your school district. It reports the district’s financial condition, actual revenues and expenditures for the fiscal school year.  The F-196 is used by school districts to comply with the requirements of financial reporting for OSPI and the State Auditor’s Office (SAO), the regulatory agencies.  OSPI relies on data presented in the F-196 to do analysis and provide reports to the Legislature, State and Federal governments Annual Conference2 R

The Administrative Budgeting and Financial Reporting (ABFR) handbook states: “Notice is hereby given to school districts and ESDs, in accordance with WAC , that failure to adhere to due dates will result in a delay of apportionment payments.” Tip:Allow time for unexpected challenges, error messages, and power outages! 2015 Annual Conference3 R

 October 25 – Final date for submission of your completed F-196 data from the school district to ESD.  November 1 – Final date for the ESD to return to district for corrections.  November 8 –The signed certification page is due from your school district to your ESD.  November 15 – Final date your signed certification page is due from ESD to OSPI. Note: 2015 Annual Conference 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 in accordance with WAC R

 Recovery and Carryover Spreadsheet – Avoid recovery issues.  Schedule of Expenditures of Federal Awards Template (SEFA).  Maintenance of Effort Spreadsheet – Pass/Fail.  To/From Transportation Spreadsheet – Only the cost of transporting students to and from schools should be coded to program 99.  Fund Balance Reporting Tool – Have backup for entries.  F-197 Treasurer’s Report Balancing Tool is in the ABFR Handbook. Link: Annual Conference5 D

 Make appropriate journal entries for grant claims and maintenance of effort.  Check time and effort for federal grants.  Prepare the Schedule of Federal Awards (SEFA) ◦ The data on your SEFA should tie to the F-196. ◦ SEFA instructions can be found in the ABFR Handbook Chapter XI on OSPI’s website Annual Conference Tip:Preparing these reports before closing the books allows you to take another look at your data and make any final adjustments. 6 D

 WAC – Reconciliation of monthly county treasurer’s statements to district records. Every school district shall reconcile amounts reported by the county treasurer with the district records for all funds. Any differences shall be noted and adjustments to school district records shall be made if necessary.  The Cumulative F-197 is OSPI’s database file that contains information from the county Treasurer Reports as entered by each ESD. Districts can access the F-197 file through the OSPI EDS site Annual Conference7 D

 The Accounting Manual recommends balancing the Cumulative F-197 monthly or at least quarterly.  Balancing verifies the accuracy of your data entry and the data in OSPI’s database.  Balancing monthly or quarterly avoids edit issues on the F-196. It can provide explanations for some of the F-196 edits Annual Conference Capital Region ESD 113 has a balancing tool available on their website in the Business Manager Toolkit. Tip: 8 D

 Field trips and extra curricular trips should be removed from program 99.  Special education may require journal entries.  Inventory  Revenue and expenditure accrual entries  Deductible revenue  USDA Commodities: Dr Cr  Enter taxes receivable 2015 Annual Conference9 D

 Use the OSPI Tool for coding fund balance.  Keep a printout of your tool in your year-end file.  Be aware of the GASB 54 SAO interpretations for: ◦ “restricted” – outside entity legally authorized. ◦ “committed” – board resolution as set aside for specific identifiable purpose. ◦ “assigned” – board appoints authority to an individual to make assignments of specific identifiable purpose. ◦ Maintain records of such assignments and adjustments Annual Conference10 Note:There have been recent interpretations that have changed the way fund balance Is stated. Keep current on these issues. D

 All journal entries, direct receipts, and local receipts should be committed/batched.  Verify entries for A/P and A/R are accrued to the correct year.  Post payroll in the appropriate school year.  Final S-275 Personnel Report adjustments should be complete.  Duty code suffix 4 requires a written statement submitted with the certification – verify suffix 4 coding is accurate.  Verify the F-197 is still balanced after adjustments Annual Conference11 D R

 Import your financial data to EDS.  The EDS F-196 Training Manual walks you through all entries that must be manually entered.  On the certification page: the maximum number of days should be 180, the basis of accounting populates from budget.  Remember to enter Private Purpose or Other Trust Funds.  Be sure you pick up the correct beginning fund balance figures for all funds (restatements apply). Tip:Click “save” frequently Annual Conference12 R

 Both the voted and non-voted figures should match what is on the F-197.  QZABs and QSCBs are reported as either voted or non- voted bonds depending on the capacity used when issued.  Report known claims and judgements.  Refer to the Accounting Manual for clarification on leases and contracts payable.  Compensated Absences  Amount due within one year column  Only report the principal amount of debt. Tip: Each fund has it’s own schedule Annual Conference13 D

 Method for calculation of compensated absences should be “vesting” or “termination.”  Report accumulated vacation unless in excess of maximum.  Include FICA and Medicare in both sick leave and vacation leave calculation. Note:Sick leave buyout requires a sick leave buyout policy. If the district has no policy, do not report. Note:Keep current with evolving Compensated Absences issues Annual Conference14 D

 Enter the e-rate amount, learning improvement days, impact fees, and mitigation fees.  Hit the “yes” on Cost-of-Living Increase Certification  Enter the Fire District Payment.  Enter Distorting items for programs 01-89, 98 & 99.  Enter Indirect Expenditures for program 97. Tip:In EDS, if you click the arrow in front of the item entry cell, there is an explanation of what should be entered Annual Conference15 R

 Distorting items are unusual or rare occurrences that distort your expenditures for the year.  Indirects allow the district to charge administrative costs relating to grants.  The allowable charges reported from program 97 must be district wide administrative costs.  Examples: legal costs relating to board policy and legal interpretation of laws (not student or staff issues) Annual Conference16 R

 Both distorting item entries and indirect entries affect the calculation of your district allowable indirect rate.  Making these entries ensure that you are only charging your grant with allowable administrative fees.  The F-196 is programmed to calculate the indirect rate based on the data you enter.  There is a two year lag in the calculation Annual Conference17 R

 For each program the total of the State, Federal, and Other resources must equal (to the penny) the program direct expenditures.  Total of resource by category should equal revenues in category plus or minus carryover or recovery.  “Other Resources” in program 21 is used in the Special Education Maintenance of Effort (MOE) calculation.  Pay attention to the resource category (state, federal, other). Tip: Save frequently Annual Conference18 D

2015 Annual Conference State & Federal resources should tie to revenues (plus or minus carryover or recovery) Expenditures automatically draw in from the program matrices. Resources are manually entered. 19 D

 Only one positive result is needed to pass MOE – but it is best to verify using the calculation from the website.  If local test is needed to pass, the “prior year” amount is the most recent prior year where the local amount was used to pass MOE. The F-196 displays the most recent year so the district will need to verify passage if using the local test.  This is a preliminary test. OSPI will run the final test in January and districts failing MOE will receive notification. Note:Districts have the opportunity to provide acceptable reasons for failing MOE by letter Annual Conference20 R

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 Compare your General Ledger to the F-196 document to verify totals match.  Notify appropriate staff that no changes can be made to the year.  Before submitting the F-196, run your edits.  Research and understand why the edits are triggered.  Correct issues in the system, import to EDS, rerun edits. Tip:Write explanation for your edits on the edit report and submit them with the document for ESD review Annual Conference22 D

The school district must also submit the following, when appropriate, pursuant to WAC :  If total actual expenditures exceed total appropriated expenditures in any fund, a written explanation on district letterhead must be sent with the certification page. The explanation should contain a confirmation that the over-expenditure exists and the action taken to prevent a recurrence. The superintendent or official designee should sign the letter.  Any comments on computerized information messages.  A copy of the State Board of Education waiver for a district operating less than 180 days.  If the ending total fund balance is negative in any fund, a written explanation on district letterhead must be sent with the certification page presented as described above. The explanation should contain a plan which portrays how the district will eliminate the existing deficit fund balance Annual Conference23 R

If OSPI has not closed the data file (late November), you can make your corrections as follows:  Send an to ESD requesting the file be unlocked.  Make the corrections in your school district's data.  After your ESD has told you that the file has been unlocked, electronically transmit the corrected data to your ESD and notify them it is ready. ESD will review and forward to OSPI. Rerun your copy of the F-196 for your files.  If any ending fund balances have changed, adjust your current year beginning figures. A prior year adjustment entry may be needed.  Submit a new certification page Annual Conference24 R

 Request the MS Word F-196 document from Ramona Garner at OSPI. Make manual highlighted changes to the data on all pages affected by the correction. Send the entire corrected F- 196 document, with a brief explanation of the changes, to your ESD and OSPI.  Send the newly signed certification pages to your local ESD. Note: Corrected amounts are not updated into computer databases maintained at OSPI. The revised F-196 pages will be filed with the district’s original report. Bulletins or financial reports issued by OSPI will not include the revised amounts Annual Conference25 R

 The correction should be the correction of a material error.  Only unaudited years are eligible for correction. Years for which an audit has been completed by SAO are not eligible for correction, unless the auditor directs a correction Annual Conference26 R

 Templates for the notes are in the ABFR Handbook Chapter VI: ◦ Select Cash Basis, Modified Accrual Basis or GAAP. ◦ The pension note is on the current accounting manual page. ◦ If you have a fund balance policy, it should be disclosed in the notes. Tip:Preparing the financial reporting sections of the notes before the final close is a good second look at your data Annual Conference27 D

 Signs of material weakness in internal control structure  Does the presentation of financial data follow the Accounting Manual guidance?  Federal guidance review  Ties to the F-197 Treasurer Report  Transparency  Financial stability 2015 Annual Conference28 D

 It is the district’s responsibility to ensure the accuracy of the data submitted in the F-196.  ESD reviews the document for “reasonableness.” ◦ Maintenance of effort, coding changes, fund balance, transfers, schedule of long term liabilities, etc.  OSPI does an overview. ◦ Certification page days operated, lock date, match total fund balances throughout document, supplemental page entries, preliminary vocational education, federal cross-cutting, maintenance of effort, etc Annual Conference29 D R

2015 Annual Conference30 Thanks for your participation. Questions?