1. KENTUCKY AGRICULTURAL EDUCATION RECORD KEEPING INSTRUCTIONS & EXAMPLES 1. I can define key terminology in regards to End of Year Market Adjustments and AET Experiences Scope. 2. I can make Market Adjustments. 3. I can determine and describe the Scope of my AET Experience. 4. I can create an accurate State FFA Degree.

2. As with Financial Beginning Inventory, students can get to the Finances link by clicking on the light green box from the AET homepage.

3. At the conclusion of a year, students should complete 3 final steps before running an AET report (State FFA Degree, Proficiency, etc.)

4. STEP 1: SCOPE, ANNUAL REVIEW, AND USAGE

5. The first step is to complete the Annual Review of the student’s project. To access the Annual Review, click on “Experience Manager.”

6. The Annual Review can be accessed by clicking on the Clipboard icon. The student should see a red “x” beneath the Clipboard, indicating that the review has not been completed.

7. Before entering the Numeric Quantity and Description, students should adjust the “Capital Item Usage” for all capital items. This step is very important. If students do not adjust the capital item usage, capital item amounts will not be reflected in the financial section of award applications.

8. For each Capital Item, students will need to make sure the proper usage is designated.

9. Students should specify how the item’s usage should be divided among projects. These numbers must equal 100%. If students wish to equally distribute an item’s usage among AET Experiences, they can do so by double clicking each Experience’s cell.

10. Brandon received his Troy Bilt 4 Cycle Tiller as a Non-Cash Exchange after the 2013 mowing season. He only used the tiller for his Lawn Care project in 2013. Therefore, the percentage for the tiller in 2013 would be 100%. However, in 2014, Brandon used his tiller for his Banana Peppers Project 25% of the time and 75% of the time for his Lawn Care Project. Therefore he would distribute the percentage as shown. Capital Item Usage Example:

11. After students have designated usage for each item, they are now ready to enter the numeric quantity for the scope of their project.

12. Project Scope In AET, the scope of a project is the base number of animals/acres/clients that a student has in a given year. For example, if a student has a beef breeding project with 10 head (9 cows and 1 bull), the student’s numeric quantity for the scope of their project would be 10. Even if all of the cows calved throughout the year, those offspring would not be included in the numeric quantity of the project.

13. After a student has entered their Numeric Quantity, they should type a description of their SAE project. This description should illustrate the growth of the project or explain any losses. This description is of great value to FFA award applications.

14. For our example student, Brandon, his scope/description will not match the entries shown throughout the lessons. Because only a snapshot of Brandon’s overall experiences were shown, the numeric quantity/description entered will not reflect the financial transactions that have been described. This will also be true for practice problems and student exams.

15. Example: Brandon’s Brodhead Veterinary Clinic Project Throughout the year, Brandon added the total number of hours he worked at the Brodhead Veterinary Clinic. For 2013 (August- December), Brandon worked 125 hours. During 2014, Brandon worked 500 hours.

16. Example: Brandon’s Banana Pepper Project Brandon’s total pounds of sales for 2013 was 30 lbs. During 2014, Brandon had 115 lbs. of sales. Brandon should describe the growth of this project in the description.

17. Example: Brandon’s Breeding Cattle Project *Remember that the scope for a project is the base number of animals. For Brandon’s 2013 project, he had 5 base female cattle (Cow 100, Cow 101, Cow 102, Cow 103, Cow 104, and Heifer 100). For 2014, Brandon had the following animals: Cow 100, Cow 101, Cow 102, Cow 103, Bull 300, Heifer 100, Heifer 099 (kept as a replacement heifer), and Calf 099 (transferred to capital throughout the year).

18. Example: Brandon’s Market Cattle Project For Brandon’s 2013 project, he started the year with 2 steers (Steer 201 and Steer 202). He sold Steer 202 during August. For 2014, Brandon had/sold a total of 5 market animals. He began the year with Steer 201, which he sold during the year. He was gifted a bull calf (Calf 206) that he later decided to transfer from a market animal to a part of his breeding herd. He also purchased 3 additional steers (Steer 203, Steer 204, and Steer 205) that will be resold.

19. Example: Brandon’s Lawn Care Project Brandon began this SAE with 3 customers (2013). However, because he invested in better equipment, he was able to grow his customer base to 10 yards.

20. When a student has entered this information, the red “x” beneath the Clipboard Icon should show a green “checkmark.”

21. STEP 2: END OF YEAR MARKET ADJUSTMENT

22. Students should click on the “Year-end SAE Adjusted value” to make changes to the AET calculated project value.

23. Students will see a break-down of the suggest values for each given year of a project. This value is also referred to as a project’s value.

24. Project/Suggested Value A value listed for a SAE that is the amount of money a student has invested (inventory) minus the amount of income a student has made. If the value is over $0 (a positive value), this means a student has invested more money in an SAE than earned. Once a student earns more money than they have invested, the project value will be reflected as $0- regardless of how much profit is earned.

25. Suggested Value Remember, the Project Value is also reflected as the Suggested Value for the end of the year.

26. Suggested Value The suggested value accounts for all financial transactions from the beginning date of the student’s SAE. However, any Awards, Scholarships, or Premiums are not accounted for in the suggested value. Brandon’s suggested value is calculated by taking the debits – credits: 5399.84- 2389= 3010.84

27. Suggested Value Brandon’s suggested value is calculated by taking the debits – credits: 5399.84- 2389= 3010.84 However, the Show Premium is not accounted for in the suggested value: 3010.84 + 30= 3040.84

28. Suggested Value AET will round up, so Brandon’s 2014 Market Cattle Suggested value should be 3010.84 + 30= 3040.84 $3041.00

29. Understanding Suggested Value The suggested value is any money the student has invested that has not been “earned” through sales. This money should be accounted for within current inventory. To complete a State FFA Degree, students should be able to articulate what this value is accounting for.

30. Understanding Suggested Value Since Current Inventory is where this value is accounted for, adjustments should be only be considered for current inventory items.

31. Understanding Brandon’s Market Beef Project Suggested Value Brandon ended 2013 with 1 steer (Steer 201) in his current inventory. The suggested value of $1087 is the suggested (invested amount) value of that steer.

32. Understanding Brandon’s Market Beef Project Suggested Value Brandon ended 2014 with 3 steers. (Steer 203, Steer 204, and Steer 205) in his current inventory. The suggested value of $3041.00 is a rounded value of the amount invested in these 3 steers (not counting the “income” from the show premium).

33. Calculating an End the Year Adjustment Example: A student has an animal/crop project. The animal’s/crop’s value has increased or decreased due to market changes. AET will not account for this, so the student should use market data to adjust the value of his/her inventory. Again, this is a rare entry because this gain/loss will be reflected when the animal is sold. ***CAUTION*** Do NOT inflate the value of an animal/crop above true market prices.

34. Calculating an End the Year Adjustment Example: A student has a crop project. The student has harvested a crop and has inventory on hand. AET will not account for this inventory other than what money has been invested into the crop, so the student should use market data to adjust the value of his/her inventory. ***CAUTION*** Do NOT inflate the value of a crop above true market prices.

35. Calculating an End the Year Adjustment If a student makes a market adjustment, an explanation of why an experience has been adjusted above or below its default value should be included.

36. STEP 3: FFA REPORTS For the FFA Record Keeping Contest, the State FFA Degree will be used.

37. Running an FFA Report After a student has completed making any end of the year adjustments, they are ready to apply for FFA award/ degree. Students should select the “Reports” section on the far right.

38. FFA Reports There are several useful FFA reports that can be printed to analyze a student’s SAE.

39. State FFA Degree The State FFA Degree will be utilized in Record Keeping Contests. To access any FFA Degree, the student will select Degree/Application Manager.

40. Students will be taken to the FFA Degree/Application Manager. Clicking, “Add New” will allow students to select the type of Degree they wish to edit/view.

41. Students should select “Kentucky FFA State Degree” from the drop down menu.

42. The report will run. Students will be able to delete this later if needed. To access the report, click “Application.”

43. Students will see the online State Degree application. AET can easily be accessed to edit any information by clicking the links on the top of the page.

44. By clicking on “Cover,” students will be able to see how the information they entered in the Profile section of AET is pulled directly into the State FFA Degree. Students should check for any changes that need to be made.

45. By clicking “Basic Setup,” students will see information from all of their projects listed. It is important that students set the Ending Date to be 12/31 of the year prior to submitting an application.

46. Example: Brandon would need to change the Ending Date to 2014 for his State Degree.

47. By clicking on “SAEs- Placement and Expl.,” students should the scope and description for each Placement and Exploratory projects for the years of reflected in the State FFA Degree.

48. By clicking on “SAEs- Entre. Details,” students should see the scope and description for each Entrepreneurship project.

49. By clicking on “SAEs- Entre. Details,” students should see the scope and description for each Entrepreneurship project. All years reflected in the State Degree should be shown.

50. By clicking on “Income and Expense Summary,” students should see a detailed breakdown of the finances from all SAE projects. These numbers directly come from the AET transaction entries.

51. By clicking on “Ending Current Inventory,” students should see the categories of Current Inventories. However, an important step must take place before this page is correct. Students have to detail out current inventory.

52. Projects that have current inventory will be shown as one grouped sum. The value beside the project name is the ending project value or the student’s edited end of year adjustment. That value must be allocated appropriately to the inventory that a student has on hand at the end of the year.

53. By clicking “Detail,” students will be able to identify the type of current inventory, a short description, the quantity, and value of the inventory item. Students should click “Add” to add this detail. This will allocate the total project value to the appropriate current inventory items.

54. State Degree Detail Example: At the end of the year (2014), Brandon had the following current inventory items for his Banana Pepper Project: -$12 Banana Pepper Seeds (7 packets) -$10 Canned Banana Peppers ( 2 Quart Jars) -$25 Gardening Supplies

55. State Degree Detail Example: At the end of the year (2014), Brandon had the following current inventory items for his Banana Pepper Project: -$12 Banana Pepper Seeds (7 packets) -$10 Canned Banana Peppers ( 2 Quart Jars) -$25 Gardening Supplies

56. The new detailed amount will show in the appropriate inventory category. If there is still money left to be allocated, the remaining amount will show in the original location. Students should accurately allocate all of the money until it is appropriately distributed to the current inventory items.

57. State Degree Detail Example: This is how Brandon’s Banana Pepper Project would appear in his State Degree after he detailed out his remaining current inventory.

58. State Degree Detail Example: At the end of the year (2014), Brandon had the following current inventory items for his Market Beef Project: -Steer 203 ($1061) -Steer 204 ($1003) -Steer 205 ($977)

59. State Degree Detail Example: This is how Brandon’s Market Cattle Project would appear in his State Degree after he detailed out his remaining current inventory.

60. State Degree Detail Example: At the end of the year (2014), Brandon had the following current inventory items for his Breeding Beef Cattle Project: -Calf 101A ($693) -455 lbs of Feed ($39)

61. State Degree Detail Example: This is how Brandon’s Breeding Beef Cattle Project would appear in his State Degree after he detailed out his remaining current inventory.

62. By clicking “Ending Non-Current Inv.,” the student’s capital items will be shown in the appropriate categories.

63. By clicking “Assets,” the student’s total assets will be shown in the appropriate categories. These numbers come from the student’s cash, investments, and inventory amounts.

64. By clicking “Liabilities,” the student’s total liabilities will be shown in the appropriate categories. These amounts come from any loans that a student has taken.

65. By clicking “Net Worth,” the student’s total can see a snapshot of how much contributions the student has made to all projects.

66. The Net Worth page also displays any growth in a student’s equity, as well as financial management ratios.

67. By clicking on “Earned and Prod. Invested,” the student can see a summary of how much earnings each category of their SAEs have earned. They also can see the growth of projects. Lastly, they can see a snapshot of key award areas and whether they have met qualifications.

68. By clicking on “Activities,” the student can see a summary of any FFA Activities that were entered in the AET Journal section.

69. By clicking on “Community Service,” the student can see a summary of any Community Service events that were entered in the AET Journal section. There is also a qualification check at the bottom of the page for FFA Awards.

70. By clicking on “Checklist,” the student can see a summary of all required criteria for the FFA State Degree. As students met each condition, the term “Met” will be listed. By clicking on the condition, the student will be directed to the page that the information is entered. Brandon will have to continue working towards his State FFA Degree before he can apply.

71. By clicking on “Print Application,” the student will see the instructions to print and submit an application. Because Brandon has not met all the necessary qualifications, his printed State Degree will just be a draft.

72. A draft of the State FFA Degree will be generated, and the student will be able to print the document to check for accuracy.