"To be persuasive we must be believable; to be believable we must be credible; credible we must be truthful." — Edward R. Murrow "If I am through learning, I am through." — John Wooden 1 September 16, 2015 Department of Public Instruction

WASDA NEW ADMINISTRATORS WORKSHOP Bruce Anderson School Finance Consultant 2 WASDA NEW ADMINISTRATORS WORKSHOP September 16, 2015 Department of Public Instruction

 Website Review & Resources  PI 1500 District Contacts Report  School District Financial Processes….  Revenue Limit Basics  Counting Pupils  Short Term Borrowing  Overall Budget & Property Tax Levy 3 September 16, 2015 Department of Public Instruction

 Website Roadmap Handout *  School Finance “Multi-Tasker” – Month by Month list of major activities. *  “What Happened in Act 55 ( Budget)?” *  Wisconsin Parental Choice Program (WPCP) * 4 September 16, 2015 Department of Public Instruction

 Bookmark this website  Make sure you are identified appropriately in the PI-1500 District Contacts Report. (we’ll cover this more in a little bit!)  Get on our listserv to receive important, up-to-date and the SFS bulletins – just follow the instructions under “SFS Listserve” link on the left of the “PI District Contacts Report” webpage September 16, 2015 Department of Public Instruction

Center Section 1.General Information – New Communications; PI 1500 District Contacts Report; Data Warehouse; SAFR Reporting Portal; SFS Calendar & Important Dates; Budget Development Tools; Learning Center. 2.School Financial Services Team – Team Information 3.Wisconsin Finance-Related Links – Statutes under State Legislature Scan bar on the left margin Links to important school finance topics. (This site will be updated during ) 6 September 16, 2015 Department of Public Instruction

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 The PI 1500 District Contacts Report accomplishes two goals. ◦ Identifies who is authorized to submit and receive information for many of the school financial services report (targeted s) ◦ Creates an ID/Password for those individuals authorized to submit most of the SFS reports.  The renovated PI-1500 portal was activated in January of September 16, 2015 Department of Public Instruction

9 Enter ID/Password September 16, 2015 Department of Public Instruction

10 Use this tab to update the users authority status. Select the User from the dropdown list. District (0000 ) To add someone new September 16, 2015 Department of Public Instruction

11 At least two individuals should be identified as “authorized contact “ for the PI 1500 District Contacts Report District (0000 ) To provide a User with their information use: September 16, 2015 Department of Public Instruction Links to the SFS ListServe are available on this website.

 An individual’s ID is very specific in the PI ◦ It is not an option to change an individual’s ID.  If an individual, using the same ID, is granted access and authority in multiple school districts. ◦ All personal information is universal; if changed in one district this new information will be visible in the other district(s). ◦ This maybe a good feature for a CESA employee or auditor.  Unless you are authorized to submit via the District Contacts Report, you will not be able to access the reports.  The PI-1500 District Contacts Report stays open all year long to allow for staff changes.  Districts should be reviewing this report through out the year to make sure it is updated to reflect current staff and staff assignments.  As Superintendent, one can delegate authority to complete reports, not the responsibility for said reports made on behalf of the school district. 12 September 16, 2015 Department of Public Instruction

School District Financial Processes…. …are cyclical in nature and builds upon themselves from year to year. Learn from the past Review today Forecast the future 13 September 16, 2015 Department of Public Instruction

September 16, Department of Public Instruction FY Data (last few months of old fiscal year, ended June 30)  Close out the year. ◦ Auditor Visit. ◦ File District Financial Reports (PI-1505-AC, Regular Annual Report, Special Ed Annual). Auditor will also be filing their reports FY Data (first few months of new fiscal year, began July 1)  Finalize the Budget. ◦ Count 3 rd Friday in September Membership for the Revenue Limit ◦ Receive the DPI October 15 Aid Certification ◦ Receive the Department of Revenue (DOR) Tax Values ◦ Finalize Revenue Limit ◦ BOE Sets Levies by November 1 ◦ District Sends out Tax Bills by November 10 ◦ BOE Approves “Original Budget” ◦ District submits the Budget to DPI

o School Census/CSF (PI-1505 Census) due Aug 21 o Aid Certification (PI-1505-AC) due Aug 28 o Audited Fund Balances (PI-1506-FB) due Sep 11 (auditor) o Special Education – Annual (PI-1505 SE-Ann) due Sep 18 o Annual Report (PI-1505) due Sep 18 o Transfer Service (PI-5000) due Aug 28, Part C will close on Sept. 25. o Summer 2015 Pupil Count (PI-1804) due Oct 1 o Pupil Transportation Summer 2015 (PI-1547SS) due Oct 1 o September 3 rd Friday Count (PI-1563 Sept.) due Oct 2 o Youth Challenge Academy – Sept. (PI-1563 YCA) due Oct 7 o Tax Levy (PI-401) due Nov 9 o Budget Report (PI-1504) due Nov 30 o Special Education – Budget (PI-1504 SE-Ann) due Dec 4 15 September 16, 2015 Department of Public Instruction Check Status and Due Dates in SAFR portal.

Revenue Limit Calculation Budget 3 rd Friday Count, Oct 1 Tax Values, October 15 Aid Certify Levies via PI-401 & PC-401 (in portal) Budget Adjustments approved by BOE District sends tax bills. PI-1508 Original Budget Reported to DPI PI-1504 September 16, Department of Public Instruction BOE Sets Levies Based on Final Revenue Limit

 Determines the maximum amount a school district is entitled to from: ◦ general state aid ◦ local levies and ◦ state computer aid  What affects a district’s Revenue Limit? ◦ Membership ◦ Inflationary Increase and ◦ Exemptions 17 September 16, 2015 Department of Public Instruction

These amounts are prefilled from your final revenue limit worksheet from the previous year. You should check to make sure they correspond with your information. This is your base (starting point) for the current year. 18 “ Pre-Populated Revenue Limit Worksheet” September 16, 2015 Department of Public Instruction

19 The Base and Current three–year rolling averages are compared to determine if there is a declining enrollment exemption. September 16, 2015 Department of Public Instruction

Fill in 17A and 17B from your October 1, 2015 Certified Values received from the Department of Revenue through DPI. Until you receive the values, estimate a value. 20 September 16, 2015 Department of Public Instruction

21 Right hand side of revenue limit worksheet is where your new limit is determined. Line 10C will be filled based on information entered on page 2. Line 10H is the adjustment for New Choice Pupils. Line 11 is your new revenue limit total. September 16, 2015 Department of Public Instruction Exemptions – Allow districts to levy additional amounts up and above the changes from membership

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23 Line 12A is your October 15 Certified State Aid -- Do not use your July 1 estimate. Total of 14A, B, & C cannot exceed Line 13 – If you levy to the maximum, it should be the same number. Line 15 is total of all of your other levy amounts. Line 18 is your Fund 10 Levy. Line 19 is the Total Levy. September 16, 2015 Department of Public Instruction

24 September 16, 2015 Department of Public Instruction The Per-Pupil Aid payment will be made in July of 2016 and treated as a receivable for This is a 4-month delay and it may impact your districts cash flow.

Who is counted for membership? Generally, residents for which you are financially responsible - i.e. you are paying for the student’s education. Is a “process” to help districts determine who qualifies. - Start with who is in your seats on the count date. - Subtract non-residents being educated in your seats. - Add in your residents who are elsewhere (and for which you are financially responsible). Assign your best and brightest to do the membership count. One of the most important things you will do. 25 September 16, 2015 Department of Public Instruction

◦ 3 rd Friday in September ◦ 2 nd Friday in January ◦ Data from both reports are converted to full-time equivalency (FTE) and used in the calculation of:  September - Revenue Limit and Equalization Aid  January - Equalization Aid 26 September 16, 2015 Department of Public Instruction

 Resources are available on the website to assist you. ◦ General Count Instructions ◦ PI 1563 Pupil Count Workbook ◦ PowerPoint 27 September 16, 2015 Department of Public Instruction

28 September 16, 2015 Department of Public Instruction Keep track of last minute changes to expenditures and revenues  Expenditures. ◦ Salary/benefit changes. ◦ Other program changes.  Revenues. ◦ General Aid – October 15 Aid Certification ◦ Tax Levies ◦ Computer Aid ◦ Categorical Aid ◦ Grants ◦ Local Revenues

 Why do some districts need to short-term borrow? ◦ Expenditures are fairly consistent but revenues are sporadic ◦ Insufficient fund balance ◦ A shortfall can occur at times during the year as a result of a combination of these two factors ◦ Note: The Per-Pupil Categorical Aid will not be paid until July, 2016, instead of in March, September 16, 2015 Department of Public Instruction

 Cash flow analysis is required to help determine amount and timeline  Wis. Stat (8)  Must occur after the tax levy is voted for current year (Common SD = Annual Meeting, Unified SD = Board)  Consult with school attorney and financial advisor to ensure all requirements are met 30 September 16, 2015 Department of Public Instruction

31 The Fall 2015 levies (Funds 38 & 39) should be enough to cover your debt payments due in the Spring of 2016 and Fall of (calendar year) The Budget Report should reflect the fiscal year transactions: total amount of the levy, but only the payments you will make in the Fall of 2015 and Spring of (fiscal year) September 16, 2015 Department of Public Instruction

There is a direct relationship between the numbers on the revenue limit worksheet and what you certify for the property tax levy (Form PI – 401) in the portal. 32 September 16, 2015 Department of Public Instruction

 On or before November 1, every public school board must approve the levy amounts necessary ◦ to operate and maintain district schools (s (3) Wis. Stats.),120.12(3) ◦ to meet any irrepealable tax obligations (s (4) Wis. Stats.) (4)  School district property taxes include levies for the general operations, debt service, capital expansion, and community service funds  On or before November 10, the school district clerk must certify to each municipal clerk the amount of school district tax to be assessed on the tax rolls of that municipality (s (3) Wis. Stats.) (3)

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 The school board shall adopt an “original” budget at a school board meeting after the public hearing and no later than the meeting in which the tax levy is set. ◦ November 1 st – deadline for adopting the “original” budget and setting the levy amount ◦ November 10 th – deadline for certifying the levy amount to the municipalities

 Bruce Anderson, Consultant  Carey Bradley, Consultant  Dan Bush, Consultant  Karen Kucharz, Consultant  Gene Fornecker, Auditor  Brian Kahl, Auditor  Derik Sliter, Auditor  Debi Towns, Asst. Director  Bob Soldner, Director Visit our website at: Or call: September 16, 2015 Department of Public Instruction