1. Kentucky Department of Education Division of District Support Auditor Training - June 3, 2014 NEWS YOU CAN USE

2. LaTonya Bell, MBA, CSFM Administrative Branch Manager Division of District Support District Financial Management Branch latonya.bell@education.ky.gov Phone: (502) 564-3846, ext. 4418

3. Changes to Indirect Cost Rate Process Updated KY School District Insurance Guide Updates to Affordable Care Act Guide Booster Group Resources NEWS YOU CAN USE 3

4. Fiscal Year 2015 Rates INDIRECT COST CALCULATIONS

5. Federal review of rate methodology going on now Errors already found: 1.Apply the rates from July 1 – June 30 2.KBE must approve 3.Adjustment opportunity More changes could be required FEDERAL REVIEW 5

6. Rates must be applied the same way they are calculated 1. APPLY THE RATES JULY 1 – JUNE 30 6

7. If a district used the FY 13 rate for Jul, Aug, or Sept 2013 the district must correct any overcharge Calculate the indirect costs using the FY 14 rate for those months Reduce future indirect costs in FY 14 to correct the total charged 1. APPLY THE RATES JULY 1 – JUNE 30 7

8. Agreement is between USDE and KDE Local boards should recognize the rate but approval is not required 2. KBE MUST APPROVE THE RATES 8

9. Impossible to get every district calculation correct simply by applying the account structure Districts must review and certify the rates by affirming adjustment amounts, if any 3. ADJUSTMENT OPPORTUNITY 9

10. Results of districts’ calculation must comply with OMB Circular A-87 http://www.whitehouse.gov/omb/circulars_a087_2004 HOW DO DISTRICTS KNOW WHAT ADJUSTMENTS TO MAKE? 10

11. “Instructions for Indirect Cost Adjustments for Calculating Indirect Cost Rates” KDE website HOW DO DISTRICTS MAKE ADJUSTMENTS? 11

12. District must log into the system anyway Check box WHAT IF A DISTRICT HAS NO ADJUSTMENTS? 12

13. By completing the adjustment form: Certify accuracy CERTIFICATION 13

14. INDIRECT COST INFORMATION Indirect Cost Guide and other useful resources are located on KDE’s website at www.education.ky.gov. Click on the following links:www.education.ky.gov District/School Support Overview District Financial Reporting Fund Balances, Revenues and Expenditures, COA, and Indirect Cost Rates, etc…. 14

15. KDE CONTACT INFORMATION Susan BarkleyKaren Conway Assistant DirectorEducational Financial AnalystDivision of District Support 15 th Floor, 500 Mero Street15 th Floor, 500 Mero StreetFrankfort, KY 40601 Phone: (502) 564-3846, ext. 4437Phone: (502) 564-3846, ext. 4435 susan.barkley@education.ky.govkaren.conway@education.ky.gov 15

16. UPDATED INSURANCE GUIDE

17. REVISED SECTION 1 Procurement Multiyear Awards Insurance Consultant Agent of Record Step by step guide on page 10 “Are you a Bid Law or MPC?” 17

18. REVISED SECTIONS 2, 3, 4 & 6 Auto and Fleet Insurance General Liability Insurance Educators’ Legal Liability Insurance Coverage Amount Unemployment Insurance 18

19. REVISED SECTIONS 7 & 9 Workers’ Compensation Insurance Student Accident Insurance 19

20. REVISED INSURANCE GUIDE Kentucky School District Insurance Guide Revised April 2014 is located on KDE’s website at www.education.ky.gov. Click on the following links:www.education.ky.gov District/School Support Overview District Financial Reporting Finance Officer Training, Insurance Guidelines, etc…. 20

21. KDE CONTACT INFORMATION Susan BarkleyRenee Thomas Assistant DirectorEducational Financial AnalystDivision of District Support 15 th Floor, 500 Mero Street15 th Floor, 500 Mero StreetFrankfort, KY 40601 Phone: (502) 564-3846, ext. 4437Phone: (502) 564-3846, ext. 4454 susan.barkley@education.ky.govrenee.thomas@education.ky.gov 21

22. UPDATES TO AFFORDABLE CARE ACT GUIDE

23. AFFORDABLE CARE ACT Transition Relief for 2015: Large Employer Status Substantial Compliance Clarification of full-time status 23

24. LARGE EMPLOYER 2015 = 100 or more FT & FTEs 2016 = 50 or more FT & FTEs Most KY school districts are large 24

25. SUBSTANTIAL COMPLIANCE Threshold before penalty assessment: 2015 = 70% of full-time employees 2016 = 95% or no more than 5 full-time employees Penalty is Number of FT employees minus 30 Multiplied by $167 per month 25

26. CLARIFICATION OF FULL-TIME STATUS Hours of Services will not include: Hours worked as bona fide volunteers Seasonal employees < 6 months 26

27. REVISED AFFORDABLE CARE ACT IMPLEMENTATION GUIDE Affordable Care Act Implementation Guide Revised May 2014 is located on KDE’s website at www.education.ky.gov. Click on the following links:www.education.ky.gov District/School Support Overview District Financial Reporting Health and Life Insurance Benefits and Flexible Spending Accounts 27

28. KDE CONTACT INFORMATION Susan BarkleyMelissa Sullivan Assistant DirectorEducational Financial AnalystDivision of District Support 15 th Floor, 500 Mero Street15 th Floor, 500 Mero StreetFrankfort, KY 40601 Phone: (502) 564-3846, ext. 4437Phone: (502) 564-3846, ext. 4415 susan.barkley@education.ky.govmelissa.sullivan@education.ky.gov 28

29. BOOSTER RESOURCES

30. PARENT BOOSTER USA Can gain tax-exempt status under their umbrella No Form 1023 No IRS filing fee Support, training 30

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32. KDE WEBSITE Redbook FAQs Videos 32

33. REDBOOK INFORMATION Accounting Procedures for School Activity Funds is located on KDE’s website at www.education.ky.gov. Click on the following links:www.education.ky.gov District/School Support Overview District Financial Reporting Accounting Procedures for School Activity Funds 33

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35. KDE CONTACT INFORMATION Susan Barkley Assistant Director Division of District Support 15 th Floor, 500 Mero Street Frankfort, KY 40601 Phone: (502) 564-3846, ext. 4437 susan.barkley@education.ky.gov 35

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