1. 1 School Financial Services (SFS)Team New Administrator’s Workshop V May 4, 2014 @ The Paper Valley Hotel - Appleton School Financial Services (SFS) Presenters: Bruce Anderson, Consultant Carey Bradley, Consultant

2. Workshop Agenda: 2 I ntroductions/Fiscal Year at a Glance Community Programs & Services (Fund 80) updates Transfer of Service – Decision Tree Administrative Rules (PI 15 and PI 17) Summer Membership– What a District needs to remember Intro to Special Ed for New Superintendents

3. Overview of Financial Activities April-June 3 2015-16 FY (Current fiscal year, ends June 30) Assess and Evaluate Budget to Actual revenues and expenditures Amend 2015-2016 Budget if there are changes (65.90)  Publication  PI 1504 Amendment SAFR Finish up purchasing for the 15-16 year  School year employees may be gone when the bills arrive (possible processing issues) Prepare for year end, “cleanup”, preliminary audit preparation, grant claims review (evaluate) Prepare DPI non financial reports  (Census, Calendar, Foster Group Home,TOS, Transportation) Energy Efficiency Exemption (plan)  Review performance contract for savings information reporting requirements  Determine if you need to pass a resolution  Review related expenditures to see if you have underspent and plan accordingly

4. Overview of Financial Activities April-June 4 2016-17 FY Planning (Next fiscal year begins July 1) Prepare preliminary budget  Review prior year budget performance  Confirm enrollment and staffing cost estimates  Revenue Limit calculation estimate BOE approves preliminary 16-17 Budget for presentation at the Annual meeting Prepare for the Budget Hearing at the Annual meeting (if July)  See 65.90 Budget information sample format  Publication Requirements, Performance contracting reporting Collect purchasing information from school year staff before they leave if you wish to make the purchases over the summer  Requisitions or Purchase orders  Central Purchasing needs

5. Timeline for the Financial Reports May 2016 – March 2017 5 ReportDue Date PI-7206 AGR (SAGE) – Classroom Expansion 5/13/2016 Transportation PI-1547 – aid data 6/24/2016 PI-1505 Cal – school calendar 7/22/2016 PI-1505 Census – Common School Funds 8/19/2016 PI-1505 AC – Aid Certification 8/26/2016 Transfer of Service – impacts Rev. limit 9/9/2016

6. Timeline for the Financial Reports May 2016 – March 2017 6 ReportDue Date PI-1505 Annual Report9/16/2016 PI-1505-SE Special Ed Annual Report9/16/2016 PI-1524 Tuition – State payments to district 9/23/2016 Transportation PI-1547SS Summer School 9/30/2016 Pupil Count Summer PI-1804/18059/30/2016 September PI-1563 – Pupil count 9/30/2016 Interdistrict PI-1541 – Milwaukee area only 10/14/2016 Intradistrict PI-1542 – 4 large urban district 10/14/2016 PI-1588 Supplemental Aid – limited dist. 10/7/2015 PI-1161 Adjustment – Indirect Cost Rate 10/28/2016

7. Timeline for the Financial Reports May 2016 – March 2017 7 ReportDue Date Tax Levies PC-40111/7/2016 PI-1504 Budget Report11/30/2016 PI-1505-SE Special Ed Budget11/30/2016 January Pupil Count PI-15632/1/2017 Youth Challenge Academy PI- 15633/17/2016 Debt Schedules PI-1505 Debt Anytime Referenda PI-1572 Within 10 days

8. 8 Community Service Fund (Fund 80) PI 80 Permanent Rule

9. Community Program and Service (Fund 80) 9 What is a Community Service Fund? 120.13(19) Community programs and services. Establish and maintain community education, training, recreational, cultural or athletic programs and services, outside the regular curricular and extracurricular programs for pupils, under such terms and conditions as the school board prescribes. Fund Exclusions Excluded from a Community Service Fund are any academic subjects and extra-curricular activities available only to pupils enrolled in the district. Student activities such as inter-scholastic athletics and other extra-curricular activities, pupil clubs, dances, field trips, student seminars and symposiums also may not be funded through Community Service.

10. Community Program and Service (Fund 80) PI 80 Rule 10 PI 80 supersedes previous “criteria” or “characteristics of community service activities” that will be used to describe Fund 80 expenditures. PI 80 has been in place for 1 year and school district with a Fund 80 have experienced the audit process. The imposes Fund 80 Levy limit for the 2013-14 and 2014-15 school years ended on June 30, 2015. The fall survey of Fund 80 levy and expenditures is no longer required.

11. Community Program and Service (Fund 80) Current legislation 11 School districts are strongly encouraged to: Include information on planned Fund 80 expenditures in the budget summary at an annual meeting and Publish this information on the district website.

12. Community Program and Service (CPS) 2013 WISCONSIN ACT 306 12 Community Service Fund Information website http://dpi.wi.gov/sfs/finances/fund-info/community- service/overview http://dpi.wi.gov/sfs/finances/fund-info/community- service/overview Where can one find a few examples to guide our district? Questions and Answers Related to Community Programs and Services (CPS) Questions and Answers Related to Community Programs and Services (CPS) Requires that Fund 80 expenditures be audited by the school district’s auditor.

13. Community Program and Service in Fund 10 13 Current law already directs DPI to exclude from Shared Costs (for General Aid purposes) any CPS expenditures. If an audit of the CPS expenditures were to determine that a district had inappropriately coded CPS expenditures to Fund 10, those expenditures would have to be removed from Fund 10 and would decrease the district’s Shared Costs for General Aid purposes.

14. 14 Transfer of Service (TOS) Decision Tree

15. Transfer of Service 15 The Transfer of Service Exemption to the revenue limit provides a school district that assumes responsibility for a program or service from another governmental unit an opportunity to request and be granted an exemption to the district revenue limit equal to the increased cost due to that program or service. (recurring)

16. TOS Decision Tree 16 To assist a school district considering a PI 5000 Transfer of Service request that could impact the 2016-17 Revenue Limit…. Each request must estimate the increase in costs for the 2016-17 school year. A student-based request will follow the TOS Decision Tree. Transfer of http://dpi.wi.gov/sfs/limits/exemptions/t ransfer-service website will provide a larger copy of Decision Tree and supporting information. http://dpi.wi.gov/sfs/limits/exemptions/t ransfer-service

17. TOS Decision Tree 17

18. TOS Decision Tree 18

19. 19 Wisconsin Parental Choice Program (WPCP)

20. 20 Background State funds provide vouchers to students residing anywhere in the state except Milwaukee and Racine to attend private schools in Wisconsin. $7.3 million GPR for 1,000 FTE students in 31 private schools in 2014-15. State payment is $7,214 (grades K-8) and $7,856 (9-12) per FTE in 2015-16. State payment is $7,323 (grades K-8) and $7,969 (9-12) per FTE in 2016-17. Student Eligibility Student must reside in Wisconsin and family income cannot exceed 185% of the federal poverty level ($44,828 for family of four). Funding Continuing Students- State GPR funds will directly pay for those students enrolled in the WPCP in 2014-15 and thereafter until they exit the program. Incoming (new) Students -Each school district with a WPCP student residing in it will pay for new students enrolling in the program in 2015-16 and thereafter through a reduction in their state general aids. School districts fully “count” these students under revenue limits in 2015-16 and thereafter and for state general aid purposes beginning in 2016-17.

21. Wisconsin Parental Choice Program (WPCP) 21 Beginning in 2015-16, state law directs DPI to include NEW students attending a private school with a state funded voucher for the purpose of: (a) determining a new non-recurring revenue limit exemption (Line 10.H.); (b) reducing a district’s state aids payment in June 2016; and (c) increasing a district’s 2015-16 membership used for state aid purposes in 2016-17. 2015-16 Funding: o Private Schools: State law requires private schools to receive voucher payments ($7,214 for students in grades K-8 and $7,860 for students in grades 9-12) based on current year information. For 2015-16 payments, the 3 rd Friday in September 2015 and the 2 nd Friday in January 2016 are the student count dates used to calculate the payment for NEW or “incoming” pupils. The voucher schools are paid 1/2 the annual payment based on the 3rd Friday in September student count and 1/2 the annual payment based on the 2nd Friday in January student count. Private schools have annual student membership audits and DPI will adjust the payments based on audited information.

22. 22 Reporting tax levy impact on 2017 tax statements/sent in the fall of 2016

23. TAX BILL CERTIFICATION CHANGES 23 Beginning in 2016, municipal clerks are required to prepare tax bills highlighting the portion of the tax levy attributed to non-recurring & debt referenda. This information will likely need to be provided to the clerks in the certification process from the school district. Dept. of Revenue is responsible for implementing this law change, and we expect to receive additional instructions from them on the updated process. Follow SFS ListServe bulletins for updates

24. 24 Revised Administrative Rules

25. ADMINISTRATIVE RULE CHANGES 25 PI 15 Relating to Revenue Limit Exemptions for Energy Efficiencies.  Updated to reflect the current law  Prescribed method of Application of utility savings  1:1 instructional devices are not allowable use  Changes to the reporting process and monitoring PI 17 Relating to Summer and Interim Sessions  Interim Session for Year round schools  Certain on-line classes  Removed the 270 minute per pupil per day ceiling on minutes

26. 26 Summer and Interim Sessions What a district needs to remember.

27. Summer and Interim Session Classes 27 Any Board may elect to operate summer classes (between regular school years) or interim session classes (in addition to hours required under s.121.02(1)(f)) Pupil Attendance is voluntary Open to all resident children in the district The District may choose to offer recreational/cultural programs (Fund 80) and/or academic courses (Fund 10)

28. Summer and Interim Session Classes 28 If the course is academic, all minutes per pupil per day may be counted for membership purposes if the following criteria are met:  The course is taught by DPI licensed teachers  The District does not charge residents tuition or require them to pay for the cost of instruction  Any fees charged are “allowed” and related to the actual cost of supplies  Online instruction- Instructional time while students that are on-site may be counted for students in grades 4K-6 Instructional time may be counted for residents students in grades 7-12 that attend virtually if they complete certain specific courses (NEW)

29. Summer School -What’s New 29 Online Courses  Students in grades 7-12 may take certain summer classes virtually and be counted for membership if they complete the course Interim Sessions (Year round schools only)  Courses offered during break periods may be counted for membership

30. Nonaided Summer Activities 30 Programs supported by federal money or categorical aid Recreational programs, team sports, clubs, open gym, camps Community programs, events, festivals, and performances Travel time, recess and lunch time Orientations and Extracurricular Activities Pre School programs

31. User Fees 31 School fees may not be used to subsidize other classes or students. (Fees are accounted for on a per student per class basis) If the class is not for an academic purpose, aided, required, or credited, fees may be charged but must be based upon the actual cost of the class. You must be able to document that expenditures were made to cover the fee charged to each individual student.

32. Aidable Summer or Interim Minutes 32 Up to 270 minutes per pupil per day (NEW) Only instructional time may be counted (exclude recess, lunch, travel, independent study time) Only time spent by students receiving direct instruction from a teacher who has the proper DPI license may be counted Do not count pupil minutes for Extended School Year services if you are claiming Special Education categorical aid for related expenses

33. Summer Membership 33 Complete the Excel generated worksheets PI1804- W1 and W2 and keep on file Average Daily Membership or Attendance Log The Board approved attendance policy should be used to determine enrollment if ADM is used (new guidance document available) Submit the PI1804 Summer School Membership Report electronically through the reporting portal Failure to retain your records could result in a significant impact on the related revenue

34. Summer Membership Worksheet (PI-1804-W2) 34 Reporting Average Daily Membership (ADM) for state aid eligibility: Three ways to account for minutes of instruction for students receiving instruction during summer or interim sessions 1. Maintain a log and record the actual minutes spent with each student. 2. Use Days of Membership (enrollment) for each student to calculate Average Daily Membership (ADM) for a course. 3. Upon successful completion of certain Online Courses for students entering grade 7-12 multiply the number of credits earned by 8,100. How to Calculate Summer Membership

35. Summer Average Daily Membership (ADM) 35 Average Daily Membership is the sum of possible days of attendance divided by the days of instruction for each enrollment period.

36. Summer Average Daily Membership (ADM) 36 To calculate the Average Daily Membership the district must determine the number of eligible pupil days of attendance (331) and divide this sum by the number of days the course was held (20). ADM (Column 8a) = 16.55

37. Summer Average Daily Membership (ADM) 37 o Courses are held for a specific number of days and minutes per day. o A day of membership is the first day of attendance plus any days where the pupil maintained enrollment. o Student must attend at least one day and maintain enrollment. To maintain enrollment the student is either present or absent with excuse. o For all classes, an accurate record must be kept of attendance, late enrollments, and withdrawals. o The district should have a policy to address notification that a student will not attending for the remainder of the course.

38. Summer Membership Audits and FEES 38 A membership audit requires the audit of the Summer membership calculation as well as Summer School fees. Fees are probably the biggest issue regarding Summer membership audits. Overcharges Lack of proper documentation Proper documentation includes evidence of expenditures for each summer class on a per student basis. (If a fee is charged) 38

39. Summer Session - Fees 39 Suggested Monitoring Activities (during and after the summer program) Confirm fees collected per student per course Confirm eligible expenditures per student per course Compare fees collected with actual costs If you have an excess of revenues over expenditures then refund the under spent portion of the fee before the end of the summer

40. Summer Class Transportation 40 A school board may provide transportation free of charge for pupils residing in the school district and attending summer classes. If the school board provides transportation for less than all pupils, there shall be reasonable uniformity in the minimum and maximum distances pupils are transported. Per s.121.54 (4). If a district charges for transportation to and from school, they are not eligible for transportation aid. Submit PI 1547-SS by October 1 st.

41. Extended School Year (ESY) 41 ESY describes services provided after the end of the school year as required by an IEP. Services may be provided within a district’s summer school program. Related services (e.g. OT, PT, speech therapy) are not part of the summer school program. Supports in a summer school class (e.g. an aide) are Fund 27 costs and may be eligible for SPED Aid. However, the class itself may not be prorated with a portion in Fund 27. A student attending a summer school class under ESY and receiving SPED Aid eligible support services may not also be counted for summer school membership.

42. Summer Session – Reminders/Clarifications 42 All courses must be taught by a DPI-licensed teacher, with the exception of swimming. Swimming programs may be “taught or directed by” DPI licensed teachers. Only instructional time spent receiving instruction from a licensed teacher may be counted. Fees must be allowed and for actual cost. ADM is days of enrollment not attendance. Make sure you have paperwork and reporting information from summer coordinator

43. Summer Session 43 For further information about Summer Session, go to: http://dpi.wi.gov/sfs/children/summer-school Direct questions concerning financial issues to: Carey Bradley: (608) 267-3752 or carey.bradley@dpi.wi.govcarey.bradley@dpi.wi.gov Direct questions concerning transportation issues to: Bruce Anderson: (608) 267-9707 or bruce.anderson@dpi.wi.govbruce.anderson@dpi.wi.gov Direct general questions to: Wendi Zitske: (608) 266-8938 or wendi.zitske@dpi.wi.govwendi.zitske@dpi.wi.gov

44. 44 Intro to Special Ed for New Superintendents

45. Fund 27 45 Fund 27 is the Special Education Fund Think of it as…  A segregated subset of your General Fund  A method to account for the excess cost of special education  A place to keep separate the strings attached to special education money Based on “excess cost” of special education

46. “Excess Cost” Means Excess 46 An excess cost is a cost you would not otherwise have but for the need to provide a FAPE to students with disabilities.  State aid and IDEA grant funding are based upon excess cost

47. Excess Cost Rules of Thumb 47 Would you incur this cost anyway without a special education program? Would this position have a lower FTE without a special education program? Does this cost also serve students without disabilities? Does this child-specific cost serve her IEP? If the answer is “no,” then it probably isn’t an excess cost of special education.

48. SPED Funding Sources 48 State categorical aids  Special Education and School-Age Parents  High Cost Special Education  Supplemental Special Education Federal IDEA Part B grants  Flow-Through  Early Childhood Federal IDEA supplement  High Cost Special Education Aid programs cover roughly 1/3 of special education costs in Wisconsin

49. What’s Funded? 49 Both state aid and IDEA  Teachers and aides  Specialized transportation IDEA only  IEP development and monitoring  Technology and other equipment  Renovation  Support staff  Professional development  …and more Costs must tie back to IEPs NOTE: Descriptions are broad and generic; consult DPI guidance for specific details and additional allowable costs

50. Specialized Transportation 50 Serves students with IEP-documented transportation needs Cannot receive both regular and special ed aids for transporting the same pupil Best Practice: Manage and account for regular and specialized transportation separately

51. Maximizing Your Revenue 51 Put It On The Grant!  More costs allowed for IDEA (see http://sped.dpi.wi.gov/files/sped/pdf/idea-allowables.pdf)http://sped.dpi.wi.gov/files/sped/pdf/idea-allowables.pdf Make Sure Staff Are Licensed!  Checkoff/tracking system for SPED staff and new hires can be helpful If In Doubt, Ask!  Better to find out in advance if a cost is eligible than after it’s paid for

52. IDEA Maintenance of Effort (MOE) 52 LEAs must spend same local/state amount on special education from year to year Checked twice  Eligibility (can you claim funds this year?): Compare this year’s budget (PI-1504-SE) with last year’s actual (PI-1505-SE)  Compliance (did you meet the requirement last year?): Compare last year’s actual with the previous year’s (PI-1505-SE) Documentation and calculators available at http://dpi.wi.gov/sped/educators/fiscalhttp://dpi.wi.gov/sped/educators/fiscal

53. The Four MOE Tests 53 MOE Tests Proj. 011/019 Costs Less Local Revenue Fund 10 to Fund 27 Transfer Total Amount Test 1Test 2 Per Student Test 3Test 4  Each test compared separately to the last time you passed it  “Per Student” based on Oct. 1 Child Count  Only need to pass one

54. IDEA Excess Cost 54 Requirement you spend at least as much on SwDs as other students before using IDEA  “Supplement, Not Supplant” Compared at “elementary” and “secondary” levels District must complete worksheet to determine compliance and keep on file at district  New requirement from U.S. Dept. of Ed. audit finding of DPI  Must be able to produce worksheet and supporting documentation for Single Audit or random monitoring Documentation and worksheet available at: http://dpi.wi.gov/sped/educators/fiscal/excess-cost

55. Takeaways 55 Special education fiscal and program/legal issues are linked Don’t assume business office and special ed director are on the same page The IEP drives everything!

56. Your turn… 56

57. Thanks to WASDA for the opportunity to speak to you today! (all Area Code 608) 57 Contact Information  Bruce Anderson, Consultant 267-9707  Carey Bradley, Consultant 267-3752  Daniel Bush, Consultant267-9212  Karen Kucharz Robbe, Consultant266-3464  Victoria Chung, Accountant267-9205  Brian Kahl, Auditor 266-3862  Gene Fornecker, Auditor 267-7882  Vacant, Auditor 267-9218  Debi Towns, Assistant Director267-9209  Bob Soldner, Director 266-6968  School Financial Services http://dpi.wi.gov/sfs http://dpi.wi.gov/sfs

58. 58 Long-term capital improvement trust fund (Fund 46)

59. Long-term capital improvement trust fund. (Fund 46) 59 A school board may establish a “trust” to fund capital improvement projects per their ten year long-term capital improvement plan. The “trust” is funded with a transfer from the general fund. The FY contribution (transfer) from Fund 10 to the Fund 46 trust is recorded as the expenditure for shared cost and equalization aid purposes.

60. Long-term capital improvement trust fund. (Fund 46) 60 RESTRICTIONS Funds may not be used for cash flow purposes. They must be physically held in a separate account. May only use funds for capital facility projects (per the ten year plan). May not use funds for an initial five year period. (Five years from the date of the first deposit)

61. Long-term capital improvement trust fund. (Fund 46) 61 BENEFITS Allows districts to set aside funds for capital projects Requires planning for capital facility needs and improvements including care and maintenance. May level out expenses for shared cost (rather than a large project expenditure in Fund 10) Opportunity for end of fiscal year expenditure

62. Long-term capital improvement trust fund. (Fund 46) 62 Basic Components of a Capital Improvement Plan 1. Describe nature of each capital improvement project. 2. Identify the project location 3. Provide a cost estimate 4. Provide a timeline Getting Started 1. Board approved 10 year capital improvement plan. 2. Board resolution to establish a trust. 3. Creation of a segregated bank account. 4. Deposit funds into the account.