1. SPRING AT A GLANCE & the Budget Amendment Process March 11, 2015 Debi Towns, Assistant Director School Financial Services Team, DPI

2. Why “Spring at a Glance”?  To help you prepare for next few months  To answer the basic questions that we receive throughout the year  To show how data that we collect from school districts translates into: ◦ Payment of State Aids (General Aid, Categorical Aids) ◦ Calculation of Revenue Limit 2

3. Who We Are – The SFS Team 3 Division for Finance and Management Brian Pahnke Assistant Superintendent School Financial Services Robert Soldner, Director Education Administrative Director Bill Evans IS Business Automation Specialist Victoria Chung Accountant Senior Gene Fornecker School Finance Auditor Bruce Anderson School Administration Consultant Dan Parizo IS Business Automation Specialist Paul Spirek IS Business Automation Specialist Derek Sliter School Finance Auditor Brian Kahl School Finance Auditor Karen Kucharz Robbe School Administration Consultant School Financial Services Debi Towns, Assistant Director Education Administrative Director Carey Bradley School Administration Consultant Dan Bush School Administration Consultant

4. How We Can Help You  Phone calls, e-mail  Web pages, webcasts, and tutorials ◦ Late Breaking News (from SFS Home Page):  http://sfs.dpi.wi.gov/sfs_late_breaking ◦ Prior presentations: http://sfs.dpi.wi.gov/sfs_presentations  Newsletters and listserv notices [SFS Bulletins] ◦ Repository of prior SFS Bulletins and Newsletters:  http://sfs.dpi.wi.gov/sfs_mailings ◦ If you are not already subscribed, you can do so at the following website: http://sfs.dpi.wi.gov/sfs_listservsubscribe  Conferences and workshops 4

5. What You Should Do…Today!  Bookmark this website http://sfs.dpi.wi.gov/  Make sure you are identified appropriately in the PI-1500 District Contacts Report.  Please ensure updates are made to reflect changes in staff or responsibilities. 5

6. What We Will Cover Today … Processes you need to be aware of for the next few months ◦ The Current Fiscal Year (2014-15)  Debt Schedules, Open Enrollment, Pupil Count Changes / Membership Audit, reporting referenda results, miscellaneous year end procedures & reports, and current year Budget Amendments. ◦ Next Fiscal Year (2015-16)  Budget for 2015-16 (estimating summer and September 2015 enrollments, revenue limits, district staff budgets) 6

7. CURRENT FISCAL YEAR 2014-15

8. MARCH Current FY 2014-15 Debt Schedule  Submit any changes to debt schedule within 10 days of the change (in the school finance reporting portal - “SAFR”) ◦ New debt issued …. or ◦ Changes to existing debt schedules.  Keeping SAFR updated will ensure consistency with the debt schedule data in the district’s Annual Report  Contact is Gene Fornecker eugene.fornecker@dpi.wi.gov  For more information on debt, including reporting instructions, please refer to http://sfs.dpi.wi.gov/sfs_debtrpt 8

9. MARCH Current FY 2014-15 Open Enrollment  Verify open enrollment students in OPAL to ensure accurate aid transfer in June.  Districts should review the status of both OE-In and OE- Out students  Contact the other district as soon as possible to resolve issues in timely manner  It may be necessary to make changes to the September & / or January pupil count reports as a result of OE adjustments. 9

10. MARCH/APRIL Current FY 2014-15 Pupil Count Changes/Membership Audit Count changes may be related to review of OE status or result of Membership Audit. District was selected for a 14-15 Membership Audit PI-1563 Pupil Count Reports will remain open until audit is received by district – changes must be made by the district, but with auditor’s agreement. District was NOT selected for a 14-15 Membership Audit District must contact the SFS Team to get the PI-1563 Pupil Count Report opened to make changes. Contact debra.towns@dpi.wi.gov 10

11. APRIL Current FY 2014-15 Membership Audits Membership audits are due to SFS Team on May 1 st. 11 Changes to the September 2014 pupil count report could have an impact on 2014-15 Revenue Limit calculation.

12. APRIL/MAY Current FY 2014-15 Report Referendum Results  Email the preliminary results to SFS Team the following day  Send Board of Canvassers Report to SFS Team (email a PDF document or fax to SFS Team)  SFS Team Contact is Carey Bradley carey.bradley@dpi.wi.gov  Referendum procedures & reporting information: http://sfs.dpi.wi.gov/sfs_ref1 12

13. APRIL/MAY Current FY 2014-15 Prepare for ‘Year End’ Procedures  Purchase Order Deadline – consider setting a deadline after which new purchase orders will not be processed  Annual Audit (July/August) – to prepare for the audit, districts should request a list of all items the auditor will need for verification ◦ The district financial statements represent the financial activity for the year ended June 30 th ◦ They are presented in accordance with Generally Accepted Accounting Principles (GAAP) and in compliance with state and federal requirements. 13

14. APRIL/MAY Current FY 2014-15 DPI Reports Membership Audit – due May 1st SAGE Classroom Expansion Claim – due May 15 th Group/Foster Care Report – report process begins in late May with letter from SFS Team to districts Report Openings (in SAFR) in May: ◦ PI-1547 – Pupil Transportation (Regular School Year) ◦ PI-1505-Calendar – School Calendar Report 14

15. SPRING Current FY 2014-15 CURRENT YEAR BUDGET CHANGES 15

16. SPRING Current FY 2014-15 CURRENT YEAR BUDGET CHANGES  The original budget provides a best estimate, at the time of the budget adoption, of the school district’s resources & costs for a school year.  As the year progresses, districts may need to change budget appropriations and purposes: ◦ State law requires that 2/3 board vote is required to change the budget [ss. 65.90(5)] ◦ Also requires that any changes made shall be published in a Class 1 notice within 10 days after the change is made. 16

17. SPRING Current FY 2014-15 CURRENT YEAR BUDGET CHANGES  Do the two-thirds vote and publication requirements apply to every change to a district’s budget?  Statute [ss. 65.90(5)]:  “ … the amounts of the various appropriations and the purposes for such appropriations state in a budget …”  Appropriation = $ amount  Purpose = function (in WUFAR) – think of as a major line item (not summary line) in the district’s budget  Note: Districts are advised to use a budget format which shows amounts appropriated for expenditures according to [WUFAR] functions, as function equates to purpose. 17

18. SPRING Current FY 2014-15 CURRENT YEAR BUDGET CHANGES  Pursuant to input from the WASB, school district officials and legal counsel, the DPI recommends that the two-thirds vote and publication are required if: ◦ Any change in $ amount budgeted for a specific purpose, and / or ◦ Any change to a purpose (Function) for which funds were appropriated in the line items of the district’s adopted budget  Changes in subordinate line items from which the adopted budget evolved (but not detailed in the adopted budget) do not require the two-thirds vote & publication. 18

19. 19

20. SPRING Current FY 2014-15 RESOURCES ON THE SFS WEB PAGES Budget Hearing and Adoption Requirements: http://sfs.dpi.wi.gov/sfs_6590req Budget Hearing Timelines http://sfs.dpi.wi.gov/sfs_6590time General Information: Budget Hearing & Adoption http://sfs.dpi.wi.gov/sfs_budhear 20

21. In a Nutshell  When can the board make an official change to the budget? ◦ Anytime it is necessary  When must a change pass by 2/3 vote? ◦ Change to appropriation ◦ Change to purpose (i.e., line item in budget / function)  When should a change be published? ◦ Within 10 days of the board action  When should a budget change be recorded in your DPI Budget Report? And WHY? ◦ As soon as practical, because that data is used for the July 1 st Estimate of General Aid 21

22. 22

23. UPCOMING FISCAL YEAR 2015-16

24. SPRING Upcoming FY 2015-16 Transfer of Service (TOS)  The net TOS amount will affect the 2015-16 revenue limit calculation as an exemption to the district’s limit  Gather TOS information ◦ Establish contact with the person in your district who is responsible for this report ◦ You will need information related to costs associated with transfers into your district, and … you may be asked for information by other districts (transfers out)  SFS Team Contact: Bruce.Anderson@dpi.wi.gov  General Information: http://sfs.dpi.wi.gov/transfer-service 24

25. SPRING Upcoming FY 2015-16 2015-16 BUDGET PREPARATION Gather preliminary budget data and compile your initial full budget  Staff should be completing individual/departmental budgets for the next school year (this practice will vary in different districts)  Open enrollment will need to be estimated since all applications are not in / acted on at this time (deadline is April 30 th ; also, year-round exceptions).  The Pre-Populated 2015-16 Revenue Limit Worksheet is available at: http://sfs.dpi.wi.gov/sfs_revlimworksheet 25

26. SPRING Upcoming FY 2015-16 2015-16 Pre-Populated Revenue Limit Worksheet At this time, your worksheet includes:  Base revenues from 2014-15 worksheet  September and Summer FTE for 2012, 2013 & 2014  Per Pupil Adjustment: $0 (Line 4A)  Low Revenue Ceiling threshold: $9,100 (Line 4B)  Eligible carryover authority from 2014-15, if applicable (Line 8A)  High Poverty Aid, if applicable (Line 12B) 26

27. SPRING Upcoming FY 2015-16 2015-16 Pre-Populated Revenue Limit Worksheet At this time, districts must estimate:  September and Summer FTE for 2015  Exemptions to revenue limit: ◦ Recurring – TOS, Transfer of Territory, Federal Impact Aid loss, Recurring Referendum (Lines 8B-8D) ◦ Non-Recurring – Non-Recurring Referendum, Energy Efficiency, Refunding/Rescinded Taxes, Uncounted Prior-Year Open Enrollment Pupils (Lines 10A-10E) NOTE: Declining Enrollment auto-calculates upon entry of 2015 FTE data  Equalized Property Values (Lines 17A & B) – it is not necessary at this time for purposes of estimating revenue (Line 11) ◦ These values will come to DPI on October 1 st ; for now, districts can use the values from 2014-15 worksheet 27

28. SPRING Upcoming FY 2015-16 28

29. SPRING Upcoming FY 2015-16 2015-16 BUDGET PREPARATION  School boards are required to approve a “proposed” budget for presentation at the budget hearing.  The Board shall adopt an “original” budget after the hearing but no later than the meeting in which the levy is set (levy must be set by November 1 st ).  Review and prepare for the annual meeting as well as meeting notice requirements.  Remember, DPI provides samples that the district can utilize for this process which are available at http://sfs.dpi.wi.gov/sfs_budhear 29

30. Spending Authority Prior to Passage of Original Budget §120.13(33) provides spending authority to the school board to meet immediate expenses of operating & maintaining the public instruction in the district during the period between July 1 st and the final adoption of a budget by the school board after the budget hearing. 30

31. Original Budget Adoption  The adopted budget identifies the anticipated revenue and proposed expenditures which the board has agreed to at the time of passage.  Budget detail is based upon the Wisconsin Uniform Financial Accounting Requirements (WUFAR) hierarchy of accounts – at the Function level.  DPI provides a recommended budget publication, adoption and change format, available at: http://sfs.dpi.wi.gov/sfs_budhear 31

32. Original Budget Adoption  65.90(1) requires districts to formulate a budget and hold public hearings  65.90(2) identifies what needs to be included  65.90(3) requires districts to publish a budget summary  65.90(3)(b) identifies what needs to be included in the “proposed” budget summary 32 The published budget summary is a “proposed” budget

33. Original Budget Adoption  65.90(4) identifies the timelines for holding the public hearing on the “proposed” budget  120.12(3)(a) and (c) requires the board to set a levy on or before Nov 1 st. The budget adopted after the public hearing but on or before November 1st is considered the first “official” budget  65.90(5) clarifies that 2/3 board vote is required to change the budget 33

34. Contact Us  Bruce Anderson, Consultant608-267-9707  Carey Bradley, Consultant608-267-3752  Dan Bush, Consultant608-267-9212  Karen Kucharz, Consultant608-266-3464  Gene Fornecker, Auditor608-267-7882  Brian Kahl, Auditor608-266-3862  Debi Towns, Ass’t. Director608-267-9209  Bob Soldner, Director608-266-6968

35. 35 So, who has a question for my answer? Henry Kissinger