1. CDE Public School Finance Training Webinar
FPP Handbook and COA Changes Update
December 8, 2011 at 2pm
FPP – Financial Policies and Procedures
COA – Chart of Accounts

2. Financial Policies and Procedures Handbook http://www. cde. state. co
The Handbook link is located under the “Financial Policies and Procedures Handbook (Word)” section of this webpage.
The Federal Grants Accounting Section provides information related to accounting and reporting of Federal grant programs by school districts, including various financial compliance resources.
Correspondence Links relate to the charter school audit requirement and the GASB Pension comment letter. Also added the On-line reporting.

3. Financial Policies and Procedures Handbook
Note that the Chart of Accounts and the Financial Policies and Procedures Handbook apply to Colorado Public School Districts, the Charter School Institute (CSI), Charter Schools, Charter School Collaboratives, and Colorado Boards of Cooperative Educational Services (BOCES)
C.R.S. – Colorado Revised Statutes
Contingent on approval by the FPP Committee at the next FPP meeting – February 2012

4. Purpose of the FPP Handbook
1) To summarize state and federal general requirements regarding the management and reporting of financial data.
2) To ensure that educational financial data are reported in a comprehensive and consistent manner.
3) To provide information and guidance regarding the budgeting, accounting, reporting, auditing, investment and cash management of educational finances.
The financial data that is reported to the Department is used for both State and Federal purposes. 4

5. Purpose of the FPP Handbook
The Handbook has been developed to conform to generally accepted accounting principles (GAAP) for governments and compliance with legal provisions.
Any reference to “school district(s)” also includes Charter Schools, Boards of Cooperative Educational Services (BOCES), Charter School Collaboratives, and Charter School Institute (CSI). 5

6. Financial Policies and Procedures
C.R.S (3) requires that the Financial Policies and Procedures Handbook shall be used by every school district in the development of the budget, in the keeping of financial records and in the periodic presentation of financial information to the board of education of the district.
The FPP Handbook includes (as the Red Book) the required statewide Chart of Accounts (COA).
C.R.S. – Colorado Revised Statutes 6

7. Financial Policies and Procedures
State Audit law also requires school district auditors to ensure, in their annual financial audit, that school districts are complying with the requirement to use the Handbook. C.R.S (1).
C.R.S. – Colorado Revised Statutes 7

8. FPP Handbook Table of Contents
Procedures
Budget
Accounting and Reporting
Audit
Investment and Cash Management
Glossary
Appendices
Contacts
The various Sections of the FPP Handbook. 8

9. FPP Handbook Changes Under “Accounting and Reporting” Section:
A discussion of the new “Non-voter Approved Debt Service Fund” was added.
Fund code 39 should be used for Non-voter Approved Debt.
Fund 39 must not be comingled with any voter approved debt activities. 9

10. FPP Handbook Changes Under “Budget” Section:
Clarification was added to the section on “District Emergency Reserve”
If you are considering – call me at to discuss. 10

11. FPP Handbook Changes
Under “Accounting and Reporting” and “Audit” Section:
A discussion of the requirement that all charter schools must have a separate independent financial audit.
A Federal finding that we could not avoid.
A copy of the letter to charter schools and their authorizers is on CDE’s website under FPP.
The charter school letter is available at the “corrspondence links” part of the FPP webpage. 11

12. FPP Handbook Changes Under “Glossary” Section:
Add an item for “On-line Schools and Programs”
Discusses the new requirement to track on-line school and program activities using a unique and specific location code (461 to 469)
The on-line school and program letter is available at the “corrspondence links” part of the FPP webpage. 12

13. FPP Handbook Changes Under “Accounting and Reporting” Section:
Added additional information related to the Financial Transparency Act requirements.
Terry will discuss the Financial Transparency Act requirements. 13

14. Financial Transparency Act
With the passage of HB , The General Assembly enacted the  "Public School Financial Transparency Act", which directs local education providers to post financial information on-line, in a downloadable format, for free public access.

15. Local Education Provider
School District
Board of Cooperative Services
State Charter School Institute
District Charter School
Institute Charter School

16. Compliance Timeline Commencing July 1, 2010
FY and FY Annual Budgets
District Budget Document
Uniform Budget Summary Sheet
FY Financial Audit
Quarterly Financial Statements
Salary Schedules or Policies

17. Additionally commencing July 1, 2011
Compliance Timeline
Additionally commencing July 1, 2011
Accounts Payable Check Registers
Credit, Debit and Purchase Card Statements
A recent survey was done by an outside entity that noted numerous issues with current postings to district websites.

18. Additionally commencing July 1, 2012
Compliance Timeline
Additionally commencing July 1, 2012
Investment Performance Reports

19. Compliance Timeline
Each local education provider shall update the information specified within sixty days after the completion or receipt of the applicable report, statement, or document.

20. Financial Transparency Act 22-44-304 (2) C.R.S.
Nothing shall direct or require a local education provider to post personal information relating to payroll, including but not limited to payroll deductions or contributions, or any other information that is confidential or otherwise protected from public disclosure pursuant to state or federal law.
There must be a state or federal law that allows the district to not report information, as protected from public disclosure.

21. Financial Transparency Act
A local educational provider shall maintain the prior two budget years’ financial information on-line until the end of the current budget year.
Three years of information is to be maintained on-line

22. Financial Transparency Act
A link shall be provided to CDE’s website or the location information for CDE’s website where a member of the public may access information or reports that are submitted directly to CDE.
This can be a link to the CDE main page, the PSFU website, SchoolView, etc.

23. Website Link

24. Budget – contents – mandatory C.R.S. 22-44-105
The budget shall be presented in the format established by the state board of education.
The budget shall:
Be presented in a summary format, understandable to layperson.
Be presented in a summary format that allows for comparisons of revenues and expenditures among school districts by pupil.
Be presented in a format that itemizes expenditures by fund, by pupil.

25. Budget – contents – mandatory C.R.S. 22-44-105
Describe the expenditure
Show amount budgeted for current fiscal year
Show the amount estimated to be expended for the current fiscal year
Show amount budgeted for ensuing fiscal year
Summarize revenues by revenue source
Summarize expenditures by function (program), fund and object

26. Budget – contents – mandatory C.R.S. 22-44-105
Include a uniform summary sheet for each fund that details the following:
Beginning fund balance and estimated ending fund balance
Anticipated fund revenue by source
Anticipated transfers and allocation to and from the fund
Anticipated expenditures by program and object
Amount of reserves

28. Minimum requirements QUARTERLY FINANCIAL REPORT 22-45-102(1)(b)(I-IV)
Statue requires the board of education to review the financial condition of the district at least quarterly during the fiscal year. The board shall required the appropriate district personnel to submit a financial report covering the fiscal actions involving the general fund and any other funds that the board may request, at least quarterly.
GENERAL FUND
FY20XX-20XX (Prior Year)
FY20XX-20XX (Current Year)
For Period Ending September 30, 20XX
BUDGET
ACTUAL
PERCENTAGE OF BUDGET
EXPECTED YEAR END BALANCE
BEGINNING FUND BALANCE
250,000.00
260,000.00
REVENUE
3,000,000.00
650,000.00
21.67%
3,120,000.00
680,000.00
21.79%
EXPENDITURES
750,000.00
25.00%
3,080,000.00
760,000.00
24.68%
ENDING FUND BALANCE
150,000.00
60.00%
290,000.00
180,000.00
62.07%
300,000.00
CAPITAL RESERVE
10,000.00
11,000.00
131,000.00
32,751.00
130,000.00
8,000.00
6.15%
133,000.00
40,000.00
30.08%
34,751.00
315.92%
9,000.00
3,751.00
41.68%
Specific Resolution Needed for Use of Portion of BFB
Minimum requirements

29. Website Link

30. District Website Links
Adams 12 Five Star Website Colorado Springs 11 The Academy of Charter Schools Don’t make the page hard to find, it should be no more then 1-2 mouse clicks from the homepage.

31. PSFU Website Links
Public School Finance Homepage Website FY Funding Information Public School Finance Self-Study Training Sessions

32. Chart of Accounts http://www.cde.state.co.us/cdefinance/sfCOA.htm
This webpage also includes a Microsoft Office Excel file with the current State and Federal Grant Codes for use by school districts, labeled as “Chart of Accounts – State and Federal Grant Codes FY ”
Still awaiting direction on treatment of some grants, such as Federal Mineral Lease and Secure Rural Schools.

33. Chart of Accounts COA – Chart of Accounts
Note that the Chart of Accounts and the Financial Policies and Procedures Handbook apply to Colorado Public School Districts, the Charter School Institute (CSI), Charter Schools, Charter School Collaboratives, and Colorado Boards of Cooperative Educational Services (BOCES)

34. Chart of Accounts Table of Contents
Introduction
Fund
Location
Special Reporting Element
Program
Object/Source/Balance Sheet
Job Classification
Grant/Project
Optional Dimensions
Appendices

35. Chart of Accounts Changes
Under “Fund”:
New Bolded Fund Code 39 – Non-voter Approved Debt Service Fund
Funds 30, 32 – 38 roll to Fund 31 and Fund 39 rolls to itself.

36. Chart of Accounts Changes
Under “Location”:
The current 461 location code for reporting On-line Activity was expanded to bold codes 461 to 469
This was done to accommodate the tracking and reporting of on-line school and program detailed activities through the ADE financial data submission process.
The On-line school and program letter is available at the “correspondence links” part of the FPP webpage.

37. Chart of Accounts Changes
Under “Object/Source/Balance Sheet”:
Multiple Changes to Balance Sheet Codes to be in compliance with GASB Statement 54.
Changes retroactive to July 1, 2011.
Do not use new codes for FY10-11 ADE financial submissions.

38. Chart of Accounts Changes
Under “Program”:
Program Code 9300 for constitutional and legally mandated reserves
Codes are now tied to the GASB 54 restricted reserve coding
Therefore, substitute 93XX for 67XX under the restricted codes.
such as 6721 equates to 9321

39. Chart of Accounts Changes
Under “Object/Source/Balance Sheet”:
Modified the Definition of SWAP Object Code 0960.
Is now – Payments to Outside Entity
Use with a grant code of 3130
This change was done to accommodate the required handling, tracking, and reporting of the SWAP grant starting in FY11-12.

40. Chart of Accounts Changes
Under “Appendices”:
The BOCES and Charter School appendices were updated to include information that sub-granting is not allowed.
In addition, a new ADE edit will not accept Fund 70 – 85 with grant codes of 3000 – 9999.
The entity that CDE provides with the funding is the responsible party for Federal compliance purposes.
BOCES – Board of Cooperative Educational Services
Fund , relate to Agency and Foundation funds.
Grant codes 3000 – 9999, relate to State and Federal grants.

41. Chart of Accounts Changes
Under “Object/Source/Balance Sheet”:
Effective for FY11-12 or later?
Based on the use of GASB Statement No. 48 (Sales of future revenues), No. 53 (Hedging derivatives), or No. 60 (Service concession arrangements) – is anyone proposing to implement GASB Statement No. 63 (Statement of Net Position) early?
Not effective until FY

42. Chart of Accounts Changes
Effective for FY11-12 or later?
GASB Statement No. 63:
If anyone is and the activity relates to proprietary funds (not governmental funds) – we need to identify the possible “deferred outflow” or “deferred inflow” codes that should be established.

43. Chart of Accounts Changes
Effective for FY11-12 or later?
Under GASB Statement No. 63:
6790 – Net Investment in Capital Assets
6791 – Net Position – Restricted
6792 – Net Position - Unrestricted

44. Chart of Accounts Changes
Under “Grant/Project”:
Beginning FY
Districts will no longer have an option to use two grant codes for Federal grants, such as 5031 & 6031
A specific grant code will be assigned that ties to CDE’s funding source (GBL).

45. Self Study This file is available on CDE’s website.
Colorado Department of Education PUBLIC SCHOOL FINANCE New Business Manager Training Session
A self-study training session is available to new business managers on CDE’s website.
Found under the “Training Materials” link on the PSFU website.
Self Study
This file is available on CDE’s website.

46. Self Study Training Session
120 slides of detailed information on the COA structure and coding examples.

47. Department Contact Information
Leanne Emm – Assistant Commissioner
Mary Lynn Christel – Principal Consultant
Wendi Chapin – Principal Consultant
Kirk Weber – Supervisor
Terry Christensen – Senior Consultant
Adam Williams – Senior Consultant

48. FPP Handbook & COA Changes
Questions?
We will conduct a brief survey of six questions.

49. FPP Handbook & COA Changes
Please Participate in the following Survey
Please provide comments and information on how we can improve to Thanks!
We will conduct a brief survey of six questions.