1. 1 School Financial Services Update Ask questions any time Ask questions any time School Financial Services School Financial Services SAFS System Update SAFS System Update FY 08–09 Accounting Manual Update FY 08–09 Accounting Manual Update FY 08–09 Budget Update FY 08–09 Budget Update FY 07–08 F196 Update FY 07–08 F196 Update

2. 2 SAFS Systems Project Update Why? The current systems are old, real old!! Why? The current systems are old, real old!! The project has proceeded in two phases: The project has proceeded in two phases: Phase One – funded with $1.9 million appropriated in the 05–07 budget. Phase One – funded with $1.9 million appropriated in the 05–07 budget. o This phase converted the P-223 enrollment system to web based reporting through EDS and converted the Apportionment system to a current server technology and made significant progress towards other systems to be converted. Phase Two – funded with an additional $2.1 million in the 08–09 budget year. Phase Two – funded with an additional $2.1 million in the 08–09 budget year. o This next phase will convert the S-275 and the financial systems onto a web based platform that will be accessed through the EDS portal. It will also convert OSPIs grants management system to a modern system.

3. SAFS Systems Project Update What Systems? What Systems? o F-195, F-196, F-203, S-275, F-200, and OSPI Grants Management Systems will maintain current functionality with only minor enhancements. Systems will maintain current functionality with only minor enhancements. Once all systems are converted, tested, and implemented, additional enhancements will be made as funds are made available. Once all systems are converted, tested, and implemented, additional enhancements will be made as funds are made available. Training and user documentation will be available prior to the release of the converted system. Training and user documentation will be available prior to the release of the converted system. 3

4. SAFS Systems Project Update When? – Current planned timelines project the following implementation timelines: When? – Current planned timelines project the following implementation timelines: o S-275–Fall 2008 o F-195–Spring 2009 – For 09–10 budgeting o F-203–Spring 2009 – For 09–10 budgeting o F-200 Budget Revision–Fall 2009 o F-196–Fall 2009 – For 08–09 reporting o OSPI Grants–Fall 2009 This timeline is not yet final and subject to revision. This timeline is not yet final and subject to revision. 4

5. 5 FY 08–09 School District Accounting Manual Updates Vacant Supervisor, School District/ESD Accounting (360) 725-6303 cal.brodie@k12.wa.us pam.peppers@k12.wa.uspam.peppers@k12.wa.us or pam.peppers@k12.wa.us mike.dooley@k12.wa.us

6. 6 FY 2008–09 Accounting Manual Updates The Accounting Manual is published cooperatively by OSPI and SAO. The Accounting Manual is published cooperatively by OSPI and SAO. The School District Accounting Advisory Committee (SDAAC) makes recommendations for updates to the manual in their role of advising on accounting, budgeting, financial reporting, and related matters. The School District Accounting Advisory Committee (SDAAC) makes recommendations for updates to the manual in their role of advising on accounting, budgeting, financial reporting, and related matters. SDAAC meetings are scheduled now through December 2008 for the 2009–10 Accounting Manual updates. SDAAC meetings are scheduled now through December 2008 for the 2009–10 Accounting Manual updates. The SDAAC web page: The SDAAC web page: http://www.k12.wa.us/safs/PUB/COM/SDAAC.asp. http://www.k12.wa.us/safs/PUB/COM/SDAAC.asp. http://www.k12.wa.us/safs/PUB/COM/SDAAC.asp Has the complete description of changes to the 2008– 09 manual. Has the complete description of changes to the 2008– 09 manual. Has meeting agendas, materials, list of committee members, etc. Has meeting agendas, materials, list of committee members, etc.

7. 7 FY 2008–09 Accounting Manual Updates Chapter 1 – Principles of Accounting: Chapter 1 – Principles of Accounting: Guidance was added for Donated Capital Assets, Donated Non-Capital Assets (Voluntary Nonexchange Transactions), and Donated Services. Guidance was added for Donated Capital Assets, Donated Non-Capital Assets (Voluntary Nonexchange Transactions), and Donated Services. Clarified nonreciprocal interfund activity, previously known as operating transfers and residual equity transfers. Clarified nonreciprocal interfund activity, previously known as operating transfers and residual equity transfers. Chapter 2 - Budgeting: Added guidance and bullets to the deductible revenues. Added guidance and bullets to the deductible revenues.

8. 8 FY 2008–09 Accounting Manual Updates Chapter 3 – Accounting Guidelines: Section 8 – Debt and Leases Section 8 – Debt and Leases Added guidance on Local Option Capital Asset Lending (LOCAL). Added guidance on Local Option Capital Asset Lending (LOCAL). Section 9 – Interfund Transaction Section 9 – Interfund Transaction Clarified and added guidance on Interfund Transactions, previously known as residual equity transfers. Clarified and added guidance on Interfund Transactions, previously known as residual equity transfers. Chapter 4 – General Ledger Accounts: Updated the Table of Contents and Matrix legend. Updated the Table of Contents and Matrix legend.

9. 9 FY 2008–09 Accounting Manual Updates Chapter 4 (cont.) Section 2 – General Ledger Account Matrix Section 2 – General Ledger Account Matrix Added GL 850, Reserved for Uninsured Risk, in the Pension Trust Fund. Added GL 850, Reserved for Uninsured Risk, in the Pension Trust Fund. Sections 2 and 3 (Description of General Ledger Accounts) Sections 2 and 3 (Description of General Ledger Accounts) Revised the description of GL Accounts 510, 515, 520, 540, and 900 as optional budgetary accounts. Revised the description of GL Accounts 510, 515, 520, 540, and 900 as optional budgetary accounts. Revised GL Accounts 535 and 536 as actual and budgetary accounts. Revised GL Accounts 535 and 536 as actual and budgetary accounts. Deleted GL Account 905. Deleted GL Account 905. NOTE: Chapters 1, 3, and 4 should be printed in their entirety due to pagination changes.

10. 10 FY 2008–09 Accounting Manual Updates Chapter 5 – Revenue Accounts: Sections 2 and 4–Added 3 new revenue accounts per Addendum to Bulletin No 025-07: Sections 2 and 4–Added 3 new revenue accounts per Addendum to Bulletin No 025-07: o 3121, Special Education, General Apportionment o 4134, Middle School Career and Technical Education o 4175, Professional Development-State Section 4–Revenues and Other Financing Sources Description Section 4–Revenues and Other Financing Sources Description Added language to Revenue Account 2500, referring users to Chapter 9, Section 9, for guidance on recording Private Purpose Trust Fund additions. Deleted guidance for ASB reimbursements in Revenue Account 2299. Added language to Revenue Account 2500, referring users to Chapter 9, Section 9, for guidance on recording Private Purpose Trust Fund additions. Deleted guidance for ASB reimbursements in Revenue Account 2299.

11. 11 FY 2008–09 Accounting Manual Updates Chapter 6 – Expenditure Accounts: Sections 2, 3, 4, and 6–Added Program 34, Middle School Career and Technical Education and Program 75, Professional Development-State, to the TOC, Program/Revenue Descriptions, Program Code Descriptions, and Object Expenditure Codes. Sections 2, 3, 4, and 6–Added Program 34, Middle School Career and Technical Education and Program 75, Professional Development-State, to the TOC, Program/Revenue Descriptions, Program Code Descriptions, and Object Expenditure Codes. Section 4–Program Code Description Section 4–Program Code Description Under Program 20–Special Education Instruction– Revised for Washington State Excess Cost Method per Addendum to Bulletin No. 025-07. The Addendum has been imbedded into the 08–09 Accounting Manual. Under Program 20–Special Education Instruction– Revised for Washington State Excess Cost Method per Addendum to Bulletin No. 025-07. The Addendum has been imbedded into the 08–09 Accounting Manual.

12. 12 FY 2008–09 Accounting Manual Updates Chapter 6 (cont.) Section 5 – Activity Code Description Section 5 – Activity Code Description In Activity 52, Operations–added the sentence Vehicle fuel costs should be charged to Object 5 in this activity. In Activity 52, Operations–added the sentence Vehicle fuel costs should be charged to Object 5 in this activity. Section 5 and 6 Section 5 and 6 In Activity 63, Operations of Building–Changed custodians and heating engineers to personnel. In Activity 63, Operations of Building–Changed custodians and heating engineers to personnel. In Activity 65, Utilities – Added the sentence Utility costs may not be charged to any program in which this activity is not allowable. In Activity 65, Utilities – Added the sentence Utility costs may not be charged to any program in which this activity is not allowable.

13. 13 FY 2008–09 Accounting Manual Updates Chapter 6 (cont.) Section 6 – Object Expenditure Codes Section 6 – Object Expenditure Codes Corrected Program 88 and 89 matrices. Corrected Program 88 and 89 matrices. Updated guidance for Object 5–Under the list of allowable expenditures added the word fuel to Transportation, Parts, and Lubricants, and added a new bullet for Vehicle fuel costs per Addendum to Bulletin No. 025-07. Updated guidance for Object 5–Under the list of allowable expenditures added the word fuel to Transportation, Parts, and Lubricants, and added a new bullet for Vehicle fuel costs per Addendum to Bulletin No. 025-07. Updated guidance for Object 7–Purchased Services – Changed Energy Services to Energy Services (not including vehicle fuel). ( See Object 5.) Updated guidance for Object 7–Purchased Services – Changed Energy Services to Energy Services (not including vehicle fuel). ( See Object 5.)

14. 14 FY 2008–09 Accounting Manual Updates Chapter 6 (cont.) Section 9 – Capital Projects Fund Expenditures Section 9 – Capital Projects Fund Expenditures Type Code 30, Equipment – Added the paragraph Motor vehicles licensed to be operated on the road are not charged to the Capital Projects Fund. Pupil transportation vehicles are charged to the Transportation Vehicle Fund. All other vehicles are charged to the General Fund. Type Code 30, Equipment – Added the paragraph Motor vehicles licensed to be operated on the road are not charged to the Capital Projects Fund. Pupil transportation vehicles are charged to the Transportation Vehicle Fund. All other vehicles are charged to the General Fund. Type Code 32, Additional – Deleted except motor vehicle and deleted the sentence Motor vehicle is defined as any vehicle licensed to be operated on the roadway. Type Code 32, Additional – Deleted except motor vehicle and deleted the sentence Motor vehicle is defined as any vehicle licensed to be operated on the roadway. NOTE: Chapter 6 should be printed in its entirety due to pagination changes.

15. 15 FY 2008–09 Accounting Manual Updates Chapter 7 – Journal Entries: Multiple changes were made and Section 14, LOCAL Journal Entries, was added. Multiple changes were made and Section 14, LOCAL Journal Entries, was added. NOTE: Chapter 7 should be printed in its entirety. Chapter 8 – Reporting: No changes were required. No changes were required. Chapter 9 – Information Unique to Each Fund and Account Group: TOC and Section 4 (ASB Fund) – Changed the guidance for the optional budgetary general ledger accounts. TOC and Section 4 (ASB Fund) – Changed the guidance for the optional budgetary general ledger accounts.

16. 16 FY 2008–09 Accounting Manual Updates Chapter 9 (cont.) Section 6 – Debt Service Fund Section 6 – Debt Service Fund Added guidance for the Transfer of State Forest Revenue from the Debt Service Fund to the Capital Projects Fund per Addendum to Bulletin No. 025-07. Added guidance for the Transfer of State Forest Revenue from the Debt Service Fund to the Capital Projects Fund per Addendum to Bulletin No. 025-07. Section 7 – Capital Projects Fund Section 7 – Capital Projects Fund Added and clarified the guidance for Allowable Expenditures by Revenue Source. Added and clarified the guidance for Allowable Expenditures by Revenue Source. Added guidance for Technology Expenditures and Capital Projects Fund Transfers per Addendum to Bulletin No. 025-07. Added guidance for Technology Expenditures and Capital Projects Fund Transfers per Addendum to Bulletin No. 025-07.

17. 17 FY 2008–09 Accounting Manual Updates Chapter 10 – Grant Management: Clarified guidance and updated references throughout the chapter. Clarified guidance and updated references throughout the chapter. NOTE: This chapter should be printed in its entirety. Appendix E–OSPI Bulletins and Memorandums on Accounting Guidance: This is a new addition to the Appendices, providing guidance per Addendum to Bulletin No. 025-07. This is a new addition to the Appendices, providing guidance per Addendum to Bulletin No. 025-07. NOTE: Appendix E should be printed in its entirety.

18. 18 FY 2008–09 Budget Update Mike Dooley, CSBO Supervisor, School District/ESD Budgeting (360) 725-6305 mike.dooley@k12.wa.us Another SFS update at WASBO.... Another SFS update at WASBO.......this is like déjà vu all over again!!!

19. 19 FY 2008–09 Budget Update Report Display Report Display Budgetary GL Account 905–Other Financing Uses will be removed and replaced with GL Account 536–Other Financing Uses Transfers Out and GL Account 535–Other Financing Uses in all funds except ASB. Budgetary GL Account 905–Other Financing Uses will be removed and replaced with GL Account 536–Other Financing Uses Transfers Out and GL Account 535–Other Financing Uses in all funds except ASB. Revenue Accounts Revenue Accounts 4134–Middle School Career and Technical Education 4134–Middle School Career and Technical Education 4175–Professional Development 4175–Professional Development

20. 20 FY 2008–09 Budget Update Programs Programs 34–Middle School Career and Technical Education– State 34–Middle School Career and Technical Education– State Open Activities: 21, 22, 24, 25, 27, 28, and 29 Open Activities: 21, 22, 24, 25, 27, 28, and 29 75–Professional Development 75–Professional Development Open Activities: 21, 22, 23, 24, 25, 26, 27, and 29 Open Activities: 21, 22, 23, 24, 25, 26, 27, and 29 Edits Edits Revenue Edit 113–Compare Revenue Account 3121, F-195 GF, to Revenue Account 3121, F-203 Output (item #329). Variance = $100 Revenue Edit 113–Compare Revenue Account 3121, F-195 GF, to Revenue Account 3121, F-203 Output (item #329). Variance = $100 Master Revenue Edit 300–Include Revenue Code 3121 Master Revenue Edit 300–Include Revenue Code 3121

21. 21 FY 2008–09 Budget Update Budgeted Beginning Fund Balance Review: Budgeted Beginning Fund Balance Review: OSPI will review each districts budgeted beginning fund balance once the F-196 information is received. OSPI will review each districts budgeted beginning fund balance once the F-196 information is received. The budgeted ending fund balance will be recalculated based upon the actual ending fund balance from the F-196. The budgeted ending fund balance will be recalculated based upon the actual ending fund balance from the F-196. If the result is a negative fund balance, your district can expect a request from OSPI to revise its budget. If the result is a negative fund balance, your district can expect a request from OSPI to revise its budget. Your board will have 30 days of receiving notice to submit a revised budget to OSPI. Your board will have 30 days of receiving notice to submit a revised budget to OSPI.

22. 22 FY 2008–09 Budget Update Budgeting Receivables: Budgeting Receivables: If your district is unable to submit a budget extension (or budget for that matter) when revenues and fund balance do not exceed expenditures, it must request in writing to include receivables, collectible in future periods, to balance the budget or budget extension. If your district is unable to submit a budget extension (or budget for that matter) when revenues and fund balance do not exceed expenditures, it must request in writing to include receivables, collectible in future periods, to balance the budget or budget extension. When a district budgets receivables, OSPI places it under binding conditions which is intended to have it recover from its deficit budget situation and move to a stable financial position. When a district budgets receivables, OSPI places it under binding conditions which is intended to have it recover from its deficit budget situation and move to a stable financial position. This usually places your ESD in an oversight position of your districts financial operations. This usually places your ESD in an oversight position of your districts financial operations.

23. 23 FY 2008–09 Budget Update Budget Extension Reminder: Budget Extension Reminder: We know all of you are busy preparing your new year budgets, but don't forget any remaining current year budget extensions. August is the final month to file your F-200 budget extensions with OSPI. Depending on when you submitted your current year F-200 for approval and when you printed your new year F-195 budget document, you may need to update your new year budget with state data after OSPI approval. This will allow your current year budget extension to be accurately displayed in the middle column of your new year F-195. We know all of you are busy preparing your new year budgets, but don't forget any remaining current year budget extensions. August is the final month to file your F-200 budget extensions with OSPI. Depending on when you submitted your current year F-200 for approval and when you printed your new year F-195 budget document, you may need to update your new year budget with state data after OSPI approval. This will allow your current year budget extension to be accurately displayed in the middle column of your new year F-195.

24. 24 FY 2008–09 Budget Update Budget Extension Reminder: Budget Extension Reminder: If your district needs to increase the amount of current year appropriation, before incurring expenditures in excess of current year appropriation, your board of directors must adopt a resolution stating the estimated amount needed. Any appropriation resolution adopted after the current appropriation level has been exceeded shall be null and void to the extent that the current appropriation level has been exceeded. If your district needs to increase the amount of current year appropriation, before incurring expenditures in excess of current year appropriation, your board of directors must adopt a resolution stating the estimated amount needed. Any appropriation resolution adopted after the current appropriation level has been exceeded shall be null and void to the extent that the current appropriation level has been exceeded.

25. 25 FY 2008–09 Budget Update ABFR Status: ABFR Status: ABFR Handbook is posted on our website at: http://www.k12.wa.us/safs/INS/ABF/0809/hb.asp. ABFR Handbook is posted on our website at: http://www.k12.wa.us/safs/INS/ABF/0809/hb.asp. http://www.k12.wa.us/safs/INS/ABF/0809/hb.asp New Chapter 11: Schedule of Expenditures of Federal Awards (SEFA) New Chapter 11: Schedule of Expenditures of Federal Awards (SEFA) After SDAAC discussion, SAO and OSPI determined that the Handbook would be a better fit for SEFA guidance. After SDAAC discussion, SAO and OSPI determined that the Handbook would be a better fit for SEFA guidance. For 2008–09 SEFA guidance will be in both the Handbook and SDAM. For 2009–10 SEFA guidance will be removed from the SDAM. For 2008–09 SEFA guidance will be in both the Handbook and SDAM. For 2009–10 SEFA guidance will be removed from the SDAM. SAO will continue to send out the bulletin reminding school districts of the due dates and process. SAO will continue to send out the bulletin reminding school districts of the due dates and process.

26. 26 FY 2007–08 F196 Update Pam Peppers Supervisor, School District/ESD Financial Reporting (360) 725-6304 pam.peppers@k12.wa.us

27. 27 FY 2007–08 F196 Update Certification Page through Page 8 Certification Page through Page 8 No changes. No changes. Page 9 – Statement of Fiduciary Net Assets Trust Funds Page 9 – Statement of Fiduciary Net Assets Trust Funds Added GL 850, Reserved for Self Insured Risk, in the Pension Trust Fund (Other Trust Column), input item 3717. Added GL 850, Reserved for Self Insured Risk, in the Pension Trust Fund (Other Trust Column), input item 3717. Page 10 – Statement of Changes in Fiduciary Net Assets Trust Funds Page 10 – Statement of Changes in Fiduciary Net Assets Trust Funds Removed Total Investment Income item. Removed Total Investment Income item. Pages 11 and 12 Pages 11 and 12 No changes. No changes. Pages 13–16 – Revenue and Other Financing Sources Pages 13–16 – Revenue and Other Financing Sources Added 3121 Special Education–General Apportionment, 4134 Middle School Career and Technical Education, and 4175 Professional Development. Added 3121 Special Education–General Apportionment, 4134 Middle School Career and Technical Education, and 4175 Professional Development.

28. 28 FY 2007–08 F196 Update Page 17 – Program Activity Object Report Page 17 – Program Activity Object Report Added Program 34, Middle School Career and Technical Education-State, and Program 75, Professional Development-State. Added Program 34, Middle School Career and Technical Education-State, and Program 75, Professional Development-State. Page 18 – Program Matrix Report Page 18 – Program Matrix Report Added Programs 34 and 75 matrices. Added Programs 34 and 75 matrices. Page 19 – Index Supplemental Reports and Schedules Page 19 – Index Supplemental Reports and Schedules No changes. No changes. Page 20 – Data Requirements for Supplemental Reports Page 20 – Data Requirements for Supplemental Reports Removed input item 1561 for Certification of Excess Cost Methodology. Removed input item 1561 for Certification of Excess Cost Methodology.

29. 29 FY 2007–08 F196 Update Page 21 – Data Requirements for End of Year Reporting to Apportionment and State Recovery Rate Page 21 – Data Requirements for End of Year Reporting to Apportionment and State Recovery Rate Changed the year reference in #2 to July 1, 2007 through August 31, 2008, for TAP reporting. Changed the year reference in #2 to July 1, 2007 through August 31, 2008, for TAP reporting. Pages 22 and 23 Pages 22 and 23 No Changes. No Changes. Pages 24 and 25 – Federal Restricted and Unrestricted Indirect Rates Pages 24 and 25 – Federal Restricted and Unrestricted Indirect Rates Multiple changes were made to the year references but no changes were made to the calculation. Multiple changes were made to the year references but no changes were made to the calculation. Page 26 – Resource to Program Expenditure Report Page 26 – Resource to Program Expenditure Report Added State, Federal, and Other Resource input item numbers for Program 34 and Program 75. Added State, Federal, and Other Resource input item numbers for Program 34 and Program 75.

30. 30 FY 2007–08 F196 Update Pages 27 through 29 Pages 27 through 29 No changes. No changes. Page 30 – Special Education Maintenance of Effort Page 30 – Special Education Maintenance of Effort Added Revenue Accounts 6321 and 3121 to the Actual and Mid Year calculations. Added Revenue Accounts 6321 and 3121 to the Actual and Mid Year calculations. Revised the notes at the bottom of the page. Revised the notes at the bottom of the page. Page 31 – Preliminary Federal Cross-Cutting Maintenance of Effort Page 31 – Preliminary Federal Cross-Cutting Maintenance of Effort No changes. No changes. Page 32 – Preliminary Vocational Education Maintenance of Effort Page 32 – Preliminary Vocational Education Maintenance of Effort Added Revenue Account 6338 to the calculation in both columns. Added Revenue Account 6338 to the calculation in both columns.

31. 31 Financial Reporting Update The SAFS website (www.k12.wa.us/safs) has two menu picks on the left hand side of the page, Financial History Reports and Indirect Cost Rates. These menu picks were added last year to make access to reports easier. The SAFS website (www.k12.wa.us/safs) has two menu picks on the left hand side of the page, Financial History Reports and Indirect Cost Rates. These menu picks were added last year to make access to reports easier.www.k12.wa.us/safs Financial History Reports Financial History Reports Financial Reporting Summary–The most current year, 2006-07, is the first summary report on the list. Section 3 reports are in pdf and MS Excel format. Financial Reporting Summary–The most current year, 2006-07, is the first summary report on the list. Section 3 reports are in pdf and MS Excel format. Financial History Reports–Multiple 5 year financial history reports and a 3-Year General Fund Expenditure Matrix. Financial History Reports–Multiple 5 year financial history reports and a 3-Year General Fund Expenditure Matrix. Apportionment Reports, F-195 Budget, and F-196 Annual Financial Statements. Apportionment Reports, F-195 Budget, and F-196 Annual Financial Statements.

32. 32 Maintenance of Effort and Recovery and Carryover Templates The Federal Cross-Cutting and Special Education MOE tests are complete. The MOE templates have been updated and posted to our website under Training/Tools at http://www.k12.wa.us/safs/TT/tt.asp. The Federal Cross-Cutting and Special Education MOE tests are complete. The MOE templates have been updated and posted to our website under Training/Tools at http://www.k12.wa.us/safs/TT/tt.asp. http://www.k12.wa.us/safs/TT/tt.asp Districts are encouraged to access these templates and run their own MOE tests for mid year and budget purposes. Districts are encouraged to access these templates and run their own MOE tests for mid year and budget purposes. Steve Shish has updated the 2006–07 Recovery and Carryover Spreadsheet through April on our website at http://www.k12.wa.us/safs/TT/tt.asp. Steve Shish has updated the 2006–07 Recovery and Carryover Spreadsheet through April on our website at http://www.k12.wa.us/safs/TT/tt.asp. http://www.k12.wa.us/safs/TT/tt.asp

33. 33 Thank you for coming Other topics of discussion? Other topics of discussion? Comments? Comments? Questions? Questions?