1. OkASBO/SDE/CCOSA REGIONAL WORKSHOPS ADMINISTRATIVE COST OCAS SUBMISSION TRANSPARENCY ESTIMATE OF NEEDS AUDITS

2. 5% ADMINISTRATIVE SERVICES Any school district with an average daily attendance (ADA) of more than one thousand five hundred (1,500) students for the preceding year which expends for administrative services in the 2005-06 school year or any school year thereafter, less expenditures for legal services, more than five percent (5%) of the amount it expends for total expenditures, less expenditures for legal services, shall have the amount which exceeds the five percent (5%) withheld the following year from the Foundation and Salary Incentive Aid for the school district.

3. 7% ADMINISTRATIVE SERVICES Any school district with an average daily attendance (ADA) of more than five hundred (500) students but not more than one thousand five hundred (1,500) students for the preceding year which expends for administrative services in the 2005-06 school year or any school year thereafter, less expenditures for legal services, more than seven percent (7%) of the amount it expends for total expenditures, less expenditures for legal services, shall have the amount which exceeds the seven percent (7%) withheld the following year from the Foundation and Salary Incentive Aid for the school district.

4. 8% ADMINISTRATIVE SERVICES Any school district with an average daily attendance (ADA) of five hundred (500) or fewer students for the preceding year which expends for administrative services in the 2005- 06 school year or any school year thereafter, less expenditures for legal services, more than eight percent (8%) of the amount it expends for total expenditures, less expenditures for legal services, shall have the amount which exceeds the eight percent (8%) withheld the following year from the Foundation and Salary Incentive Aid for the school district.

5. FUNDS 11-60 Staff for the Board of Education Functions: 2313 (Board Treasurer Services) 2318 (Audit Services) 2319 (Other Board of Education Services) Objects: 100-200 Series (Salaries and Fixed Cost) 310 (Official/Administrative Services) 330 (Other Professional Services

6. FUNDS 11-60 Secretary/Clerk for the Board of Education Functions: 2312 (Board Clerk/Deputy Clerk/Minute Clerk Services) Objects: 100-200 Series (Salaries and Fixed Cost) 310 (Official/Administrative Services) 330 (Other Professional Services

7. FUNDS 11-60 Staff Relations and Negotiations Functions: 2316 (Staff Relations and Negotiations Services) Objects: 100-200 Series (Salaries and Fixed Cost) 310 (Official/Administrative Services) 330 (Other Professional Services

8. FUNDS 11-60 Immediate Staff of the Superintendent Functions: 2321 (Office of the Superintendent Services) Objects: 100-200 Series (Salaries and Fixed Cost) 310 (Official/Administrative Services) 330 (Other Professional Services Job Classes: 615 (Regular or Substitute Secretary/Clerk) 690 (Superintendent’s Secretary)

9. FUNDS 11-60 Any Superintendent, Elementary Superintendent or Assistant Superintendent Functions: All Objects: 100-200 Series (Salaries and Fixed Cost) 310 (Official/Administrative Services) 330 (Other Professional Services Job Classes: 106 Deputy/Associate/Asst. Supt/Commissioner 115 Superintendent/Commissioner

10. FUNDS 11-60 Any employee of a school district employed as a director, coordinator, supervisor, or who has responsibility for administrative functions of a school district Functions: All Objects: 100-200 Series (Salaries and Fixed Cost) Job Classes: 101, 107, 109, 301, 303, 332, 513, 601, 612

11. FUNDS 11-60 Any consultant hired by the school district Functions: All Objects: 100-200 Series (Salaries and Fixed Cost) Job Classes: 108 Instructional Program Director/Coord./Consultant 110 Non Instructional Program Director/Coord./Consult. 325 Grant Developer

12. 70 O.S. § 18-124 If an employee of a school district is employed in a position where part of the employee’s time is spent as an administrator and part of the time is spent in nonadministrative functions, the percentage of time spent as an administrator shall be included as administrative services. A superintendent who spends part of the time performing exempted nonadministrative services such as teaching in the classroom, serving as a principal, counselor, or library media specialist, can code up to forty percent (40%) of their salary to other nonadministrative functions. The total amount of time a superintendent of a school district spends performing services for a school district shall be included as administrative services even if part of the time the superintendent is performing nonexempted nonadministrative service functions. The total amount received by a superintendent from the school district as salary, for the performance of administrative and nonexempted nonadministrative services, shall be recorded under the code for superintendent salary as provided for in the Oklahoma Cost Accounting System.

13. OCAS DEADLINE SUBMISSION 70 O.S. § 5-135.2 A. For the 1991-92 school year, school districts shall report financial transactions for all funds, except for the school activity fund, using the Oklahoma Cost Accounting System, as adopted by the State Board of Education pursuant to Section 5-135 of this title. Costs shall be reported by curricular subject area where applicable. For the 1992-93 school year and in each subsequent school year, school districts shall report financial transactions for all funds using the Oklahoma Cost Accounting System. Costs shall be reported by curricular subject area where applicable. B. Beginning July 1, 1991, and in each subsequent school year, the State Department of Education shall reduce the monthly payment of a district's State Aid funds if, at the time of such payment, the district is not operating pursuant to the Oklahoma Cost Accounting System. The amount of the reduction shall be one percent (1%) for the first payment, two percent (2%) for the second payment, three percent (3%) for the third payment, four percent (4%) for the fourth payment, and five percent (5%) for each subsequent payment. The reduction may be waived by the State Board of Education if the district can demonstrate that failure to operate pursuant to such system was due to circumstances beyond the control of the district and that every effort is being made by the district to operate pursuant to such system as quickly as possible. C. No later than September 1 each year, every district board of education shall prepare a statement of actual income and expenditures of the district for the fiscal year that ended on the preceding June 30. The statement of expenditures shall include functional categories as defined in rules adopted by the State Board of Education to implement the Oklahoma Cost Accounting System pursuant to Section 5-135 of this title. D. No later than September 1 each year, every school district shall transmit a copy of the income and expenditures data required pursuant to subsection C of this section to the State Department of Education. The Department shall post the income and expenditure data on the Internet web site for the Department in a form that is accessible to the public.

14. OCAS DEADLINE SUBMISSION 210:25-5-4 part b (b) The year-end financial report recording and summarizing all revenue and expenditure financial transactions will be completed and certified on the due date.

15. OCAS Deadline Penalty 210:25-5-4 part D (d) As referenced in 70 O.S. 2001, § 5-135.2 (B), the State Department of Education shall reduce the monthly payment of a district's State Aid funds if the district is not operating pursuant to said system. Not operating pursuant to said system shall be defined as a district not: (1) accurately recording and reporting all revenue and expenditures by applicable OCAS bold code dimensions; (2) submitting OCAS financial records via the Web-based system of all recorded and reported revenue and expenditures by applicable OCAS bold code dimensions to the State Department of Education; (3) ascertaining that current and accurate applicable OCAS codes are being utilized as updated and maintained by the State Department of Education; (4) complying with regulations as outlined in OAC 210:25-3-7 (Financial information processing), OAC 210:25-5-10 (The encumbrance clerk), OAC 210:25-5-11 (The school district treasurer), OAC 210:25-5-12 (Purchase order procedures for schools), or OAC 210:

16. OCAS Deadline Penalty O.S. 70 § 5-135.2 Part B B. Beginning July 1, 1991, and in each subsequent school year, the State Department of Education shall reduce the monthly payment of a district's State Aid funds if, at the time of such payment, the district is not operating pursuant to the Oklahoma Cost Accounting System. The amount of the reduction shall be one percent (1%) for the first payment, two percent (2%) for the second payment, three percent (3%) for the third payment, four percent (4%) for the fourth payment, and five percent (5%) for each subsequent payment. The reduction may be waived by the State Board of Education if the district can demonstrate that failure to operate pursuant to such system was due to circumstances beyond the control of the district and that every effort is being made by the district to operate pursuant to such system as quickly as possible

17. OCAS Submission Changes 210:25-5-4 part C (c) The school district must inform the Financial Accounting Section of the State Department of Education of any changes made at the district level to any of the financial transactions already submitted to the State Department of Education. Further, none of the data submitted by Law can be changed or altered by either the school district or the Financial Accounting Section after November 15 of each year.

18. Inventory 210:25-5-4 part H (h) Inventory cards or data processing records shall be kept on all equipment and removable fixtures, showing purchase order number when known, date of purchase (when known, if not known an estimated date shall be used), amount of purchase (if known, if not known present value must be estimated) a description of the item, the serial number (when applicable) and the location of the item. New purchases shall be included in the records on the same day in which they are physically received by the district. Disposed equipment must be removed from the records on the disposal date and a detailed description of the circumstances which results in the disposal recorded. Disposed equipment should not be included in the records of future years

19. Transparency Site O. S. 70 § 5-135-2 Part D D. No later than September 1 each year, every school district shall transmit a copy of the income and expenditures data required pursuant to subsection C of this section to the State Department of Education. The Department shall post the income and expenditure data on the Internet web site for the Department in a form that is accessible to the public.

20. Transparency Site

24. IT IS VERY IMPORTANT TO REMEMBER TO CHANGE THE FISCAL YEAR

25. THE FOLLOWING ARE THE LEGAL DOCUMENTS THAT ALLOWS YOUR SCHOOL DISTRICT THE AUTHORITY TO SPEND APPROPRIATED MONEY

26. TEMPORARY APPROPRIATIONS ESTIMATE OF NEEDS NEW BUDGET ACT SUPPLEMENTAL APPROPRIATIONS

27. ESTIMATE OF NEEDS OR BUDGET (If you are on the New Budget Act) IS DUE OCTOBER 1 TO COUNTY EXCISE BOARD & SDE

28. Audit Contract Audit contracts must be filed no later than Friday, June 28, 2013 Execute in Triplicate: One for School File One for Contracting Auditing Firm One for SDE Contracts must not be dated prior to January 7, 2013 Approved List of Auditors is on the State Auditor and Inspector’s Website or the SDE’s Financial Accounting Website.

29. Audits Audit Determination Letters State Department of Education notifies districts around late December early January whether the district needs an “A” audit or a “B” audit. Letters are calculated from previous year’s data upload. Calculation combines federal revenue received, federal encumbrances, federal warrants and commodities (from DHS)

30. Audits Districts who have expended $500,000 or more in federal money are what is referred to as an “A” audit. These audits must be completed, presented to the local board of education and submitted to Financial Accounting no later than March 30. Districts who have expended less than $500,000 in federal money are what is referred to as an “B” audit. These audits must be completed, presented to the local board of education and submitted to Financial Accounting no later than April 30.

31. Audits Regardless of which type of audit is performed, the audit must be submitted to Financial accounting thirty days after it has been presented to the local board of education. 70 O.S. § 22-108 “Thirty (30) days after the audit presentation to the local board of education, forward one copy of the audit report to the SDE”

32. Audits State Department of Education reviews the audit in accordance with: Office of Management and Budget (OMB) Circular No. A-133 Oklahoma Public School Audit Law, Title 70, Section 22 Oklahoma Administrative Code 210:25- 5-5 Auditing

33. Audits (OMB) Circular No. A-133 has defined three areas of responsibility: Pass Through Entity- State Department of Education Auditee- District Auditor- District’s Auditor

34. Audits Auditee’s Responsibilities Identify…all Federal awards received and expended …” Maintain internal control over Federal programs…” Comply with laws, regulations, and the provisions of contracts or grant agreements related to each of its Federal programs.” Prepare appropriate financial statements, including the schedule of expenditures of Federal awards Ensure that the audits required by this part are properly performed and submitted when due.” Follow up and take corrective action on audit findings, including preparation of a summary schedule of prior audit findings and a corrective action”

35. Audits Pass Through Entity’s Responsibility Identify Federal awards made by informing each subrecipient of CFDA title and number, award name and number, award year. Advise subrecipients of requirements imposed on them by Federal laws, regulations, and the provisions of contracts or grant agreements as well as any supplemental requirements imposed by the pass-through entity. Monitor the activities of subrecipients as necessary to ensure that Federal awards are used for authorized purposes…” (Federal Programs) Ensure that subrecipients expending ($500,000) or more in Federal awards during the subrecipient's fiscal year have met the audit requirements of this part… Issue a management decision on audit findings within six months after receipt of the subrecipient's audit report and ensure that the subrecipient takes appropriate and timely corrective action. Consider whether subrecipient audits necessitate adjustment of the pass- through entity's own records.”

36. Audits Pass Through Entity’s Responsibility Consider whether subrecipient audits necessitate adjustment of the pass-through entity's own records. Determine if audit was received timely Review financial statements Review Schedule of Expenditure of Federal Awards (SEFA) Review Schedule of Prior Year Audit Findings Corrective Action Plan (CAP) If exceptions and/or recommendations have been mentioned in the Management Letter, the Department may ask for a response. Districts can use the CAP form as an example

37. Audits Pass Through Entity’s Responsibility If errors are found regarding these areas, the State Department will contact the district for corrections. Please note - Regardless of who is responsible for a specific report, the school district is legally responsible to ensure all components are included in the report.

38. Audits Pursuant to 70 O.S. § 22-108 The statute provides in part: E.... If within ten (10) months after the end of the fiscal year of the public school a copy of the audit report has not been received by the State Board of Education, an inquiry shall be made by the State Board of Education as to why such report has not been filed. Should the State Board of Education find that the local board of education has failed to cause an annual audit to be commenced, the State Board of Education shall make a written demand on said board to complete and file such annual audit within thirty (30) days of the date of such demand. Pursuant to 70 O.S. § 22-112 (State Aid withheld for failure to comply with article): “All further “payment” of State Aid for each district shall be withheld until the provisions of this article have been fulfilled by said district.”

39. EXCESS COST INDIRECT COST No Child Left Behind Maintenance of Effort Special Education Maintenance of Effort

40. All of these calculations are in the back of the OCAS Manual Policies and Procedures Tab

41. CONTACT INFORMATION Nancy Hughes, Executive Director Nancy.Hughes@sde.ok.gov Iona Martin, Financial Specialist Iona.Martin@sde.ok.gov Pam Honeysuckle, Financial Specialist Pam.Honeysuckle@sde.ok.gov Katherine Black Katherine.Black@sde.ok.gov