1. Commonwealth Payments & Reporting Process Presented by: Anita Butcher Jonathan Hollenbach Staff Accountant School Finance Division Labor, Education and Community Services Comptroller’s Office Voice: (717) 783-9010 Voice: (717) 783-9008 Facsimile: (717) 787-3593 Facsimile: (717) 787-3593 E-mail: abutcher@state.pa.us E-mail: joholleba@state.pa.us PASBO – 51 st Annual Conference March 2006

2. What services are provided by the Labor, Education and Community Services (LECS) Comptroller’s Office? The LECS Comptroller’s Office provides accounting and audit services to three agencies. –The Department of Education –The Department of Labor and Industry –The Department of Community and Economic Development The LECS Comptroller’s Office performs a dual function in carrying out their responsibilities and duties. –First, on behalf of the Secretary of the Budget, they are to ensure that appropriation commitment and spending does not exceed the Governor’s established budget, and that all funds administered by agencies are expended and accounted for properly. –Second, they are the chief financial accounting officers of the agencies served. As such, they are a valuable resource to agency heads and agency staff concerning matters relating to financial and service contracting policies and procedures. –Third, Section 1501 of the Fiscal Code assigns explicit authority to LECS Comptroller’s Office for approving and disapproving requisitions for payments drawn on the Treasury Department.

3. What Divisions within LECS process payments to School Districts? –Federal Subsidies Division –Document Review and Control –School Finance Division

4. The Division of School Finance is part of what organization? The Office of the Budget, Comptroller Operations

5. Is the Office of the Budget a division of the Department of Education? No, it is a separate agency. The Labor, Education and Community Services (LECS) Comptroller’s Office is separate for the purpose of providing checks and balances within the state government. School Finance is just a facet of the Comptroller’s Office, that also includes Federal Accounting, an Audit Division, Special Accounting, General Accounting, Document Review and Control, Administration, and Labor & Industry Federal Accounting.

6. Are all State Subsidy payments processed by the School Finance Division? No! Federal Accounting processes Project payments and Food Service Reimbursement Claims. Document Review and Control processes State Subsidy Payments and Early Intervention.

7. Where can I go to find information on payments? Through the Financial Accounting Information (FAI) system User registration request via ePDE Web Portal ePDE help desk (717) 783-6788. Penn-Link notifications of payments, as well as, deductions. Yearly document packet sent in June

8. What information can I obtain from FAI? Project Information Quarterly Reconciliation of Cash on Hand Payment Detail Information (10 year history) Audit Confirmation Reports Account Coding for Payments

9. What information can I obtain from the LECS Comptroller’s Office Website? The LECS Website Address is:www.pde.state.pa.us/School_Acct Forms, Instructions and Procedures Payment Schedules Bank Deposit Change Forms Access Services to the ePDE Web Portal Accounting Guidance Annual Financial Report Manual of Accounting Tuition Rates

10. It is our goal to have you find the content of our webpage informative and easy to navigate. Any suggestions you may have will be gladly accepted at 00comptroll@psupen.psu.edu 00comptroll@psupen.psu.edu

11. What is a Unipay? A Unipay is an accumulation of School Finance payments all processed and transferred at the same time in a given month. The Unipay is paid on the last Thursday of each month. If this day happens to be a holiday, the payment will be transferred on the previous day. The June 1 st Unipay will pay on June 1 st, or the first business day preceding the 1 st.

12. What programs are processed by the School Finance Division that are NOT included with the Unipay? Social Security payments are paid on the first Thursday of each month. School Employees’ Retirement payments are paid quarterly, around the middle of the month. (September, December, March, and June). I.U. Nonpublic Services (Aug 1 st, Oct 1 st, Feb 1 st )

13. MonthTreasury Payment Date January- Unipay 01/26/2006 February – Non-Public 02/01/2006 February – Unipay 02/23/2006 March – Unipay 03/30/2006 April – Unipay04/27/2006 May – Unipay05/25/2006 June 1 st – Unipay 06/01/2006 June – Unipay06/29/2006 July – Unipay07/27/2006 August – Non-Public 08/01/2006 August – Unipay 08/31/2006 September – Unipay09/28/2006 October – Non-Public 9/29/2006 October – Unipay 10/26/2006 November – Unipay 11/30/2006 December – Unipay 12/28/2006 2006 Unipay Schedule

14. 2006 Social Security Schedule Month Treasury Payment Date January 01/05/2006 February02/02/2006 March03/02/2006 April04/06/2006 May05/04/2006 June06/01/2006 July07/06/2006 August 08/03/2006 September09/07/2006 October 10/05/2006 November 11/02/2006 December 12/07/2006

15. 2006 Retirement Schedule Month Treasury Payment Date March03/16/2006 June06/16/2006 September09/18/2006 December12/18/2006

16. What payments do the School Finance Division process, and when can LEA’s expect Major State Subsidy Payments? Programs School CodePayment Date Approved Private Schools/ PA Charter Schools 1376.1Monthly Authority Rental & Sinking Funds 2574 and 2575Upon Application Basic Education Funding 2502.xxAug, Oct, Dec, Feb, Apr, June 1 st Reimbursement for Charter School Expenses 2591.1Aug, Oct, Dec, Feb, Apr, June1st PA Accountability Grants 2599.2July Drivers Education 2504.1Upon Application Education of Indigent Children 2502.2/2509.2Upon Application

17. What payments do the School Finance Division process, and when can LEA’s expect major state subsidy payments? (Continued) ProgramSchool CodePayment Date Homebound Instruction 2510.1June Incarcerated Education 1306.2(c)Oct, Mar and June IU Nonpublic Services 972.1A(d)Aug 1 st, Oct 1 st, Feb 1 st IU Operating 968July and January IU Special Education 2509.1Aug, Nov and June IU Transportation 2509.1Aug, Jan and June

18. What payments do the School Finance Division process, and when can LEA’s expect major state subsidy payments? (Continued) ProgramSchool CodePayment Date Licensed Practical Nursing 2507Sept, Dec, Mar and June Nonpublic Schools Transportation 2509.3December & June Payments in Lieu of Taxes 604April Private Residential Rehabilitative Institutions 964.1 Aug (adv), Bal due pd upon final audit School Improvement Grants 1709BUpon Application School Employee’s Social Security 24 PA C.S. 8329Monthly

19. What payments do the School Finance Division process, and when can LEA’s expect major state subsidy payments? (Continued) ProgramSchool CodePayment Date School Employees’ Retirement 24 PA C.S. 8535Quarterly Education Assistance Program 1512-CUpon Application Special Education 2509.xxJul, Sept, Nov, Jan, Mar & June Transportation 2543 Aug, (Sept, Oct, Nov – based upon receipt of prior yr reports), Dec, March and June

20. What payments do the School Finance Division process, and when can LEA’s expect major state subsidy payments? (Continued) ProgramsSchool CodePayment Date Tuition for Orphans and Children Placed in Private Homes 1305 / 1306June Vocational Education 2517cAug, Oct, Dec, Feb, April and June 1st

21. What is the Basic Education Funding Payment Schedule? Payment Schedule AugustEstimated current year gross allocation minus estimated deductions*times 15 percent. OctoberSame as August DecemberEstimated current year gross allocation minus estimated deductions*times 15 percent minus IU Operating deduction. FebruarySame as August and October AprilSame as August, October and February June 1Basic Education Funding Formula by State Law. Total gross allocation minus deductions (if applicable) equals adjusted gross allocation. This amount minus first five (5) payments minus deductions (current year deductions and prior year adjustments) equals the final payment. *Estimated deductions – 110 percent of prior year IU Transportation, IU Institutionalized Children, PRRI, Approved Private Schools, and Scranton & Scotland school tuition deductions (exception: change in law affecting deduction calculations)

22. M onthly P ayment C ycle July Approved Private Schools Authority Rental and Sinking Funds Community Colleges Intermediate Unit Operating School Employees’ Social Security Special Education PA Accountability Grant August Approved Private Schools Authority Rentals and Sinking Funds Basic Education Funding Community Colleges Intermediate Unit Transportation Intermediate Unit Special Education Nonpublic School Services Private Residential Rehabilitative Institutes Reimbursement for Charter School Expenses School Employees’ Social Security School District Transportation Vocational Education September Approved Private Schools Authority Rentals and Sinking Funds Licensed Practical Nursing PA Charter Schools Private Residential Rehabilitative Institutes Pupil Transportation School Employees’ Social Security School Employees’ Retirement Special Education October Approved Private Schools Authority Rentals and Sinking Funds Basic Education Funding Incarcerated Education Nonpublic School Services PA Charter Schools Pupil Transportation School Employees’ Social Security School District Transportation Vocational Education Reimbursement for Charter School Expenses

23. M onthly P ayment C ycle November Approved Private Schools Authority Rentals and Sinking Funds Intermediate Unit Special Education PA Charter Schools Pupil Transportation School Employees’ Social Security Special Education December Approved Private Schools Authority Rentals and Sinking Funds Basic Education Funding Community Colleges Education Assistance Program Improvement Grants Incarcerated Education Licensed Practical Nursing Pupil & Nonpublic Transportation School Employees’ Social Security School Employees’ Retirement School District Transportation Vocational Education January Approved Private Schools Authority Rentals and Sinking Funds Intermediate Unit Operating Intermediate Unit Transportation PA Charter Schools School Employees’ Social Security Special Education February Approved Private Schools Authority Rentals and Sinking Funds Basic Education Funding PA Charter Schools Nonpublic School Services Private Residential Rehabilitative Institute Reimbursement for Charter School Expenses December Reimbursement for Charter School Expenses PA Charter Schools

24. M onthly P ayment C ycle March Approved Private School Authority Rentals and Sinking Funds Community Colleges Education Assistance Program Licensed Practical Nursing School Employees’ Social Security School Employees’ Retirement Pupil Transportation Special Education Vocational Education(Adult & Travel) Reimbursement for Charter School Expenses PA Charter Schools May Approved Private Schools Authority Rentals and Sinking Funds Education Assistance Program Intermediate Unit Transportation PA Charter Schools School Employees’ Social Security June 1 st Basic Education Funding Intermediate Unit Special Education Vocational Education Reimbursement for Charter School Expenses February School Employees’ Social Security Vocational Education Education Assistance Program Incarcerated Education April Approved Private Schools Authority Rentals and Sinking Funds Basic Education Funding Education Assistance Program PA Charter Schools Payment in Lieu of Taxes Reimbursement for Charter School Expenses School Employees’ Social Security Vocational Education

25. M onthly P ayment C ycle June Approved Private Schools Audit Adjustments/Subsidy Revisions Authority Rentals and Sinking Funds Community Colleges PA Charter Schools Driver’s Education Extraordinary Special Education Contingency Homebound Education School Improvement Grants Licensed Practical Nursing Payment in Lieu of Taxes Public and Nonpublic Transportation School Employees’ Social Security School Employees’ Retirement School District Special Education School District Transportation Tuition for Orphans and Children Placed in Private Homes

26. I have received the funds, now how should I record them? You will receive a payment letter and/or deduction letter via PennLink roughly one week before each payment. It will include instructions on the correct revenue codes to use. It is important that you SAVE THESE LETTERS for audit purposes. The following page lists common Revenue Codes and Program Area Codes. Program Area Codes can also be found listed with each payment on the FAI system.

27. REVENUE & PROGRAM CODES 2005-2006 FISCAL YEAR REVENUE PROGRAM REVENUE PROGRAM DESCRIPTIONCODE CODEDESCRIPTIONCODE CODE REIMBURSMENT OF CS7140793ACT 30 PRRI7299595 ACCOUNTABILITY GRANTS7501547OOS SP ED REIMB (APS)7271599 COMM COLLEGE 530APPR PRIV SCH 596 TUITION TRANSFER6944531APPR PRIV SCH ADJ6991996 INCARCERATED ED6944532HOMEBOUND7210605 AID DISTRESSED SD7110533HOMEBOUND ADJ7210606 INCARCERATED REV6944534HOMEBOUND BAL DUE7210607 BASIC ED FUNDING7110535ED INDIGENT CH7160615 BAS ED FUND BAL DUE7110539IU SEC 13067160623 REPAYMENT OF LOAN541SEC 1305 & 13067160624 BASIC ADJ7110941SEC 1305 & 1306 BAL7160626 ACT 30 PRRI7299536SEC 1305 & 1306 ADJ7160924 PRRI DEDUCT ADJ6991944IN LIEU OF TAXES6114625 SECTION 2564 (TUIT DUE)6944537IMPROVEMENT GRANT7170637 IU OPERATING7120538TECHNOLOGY NP SCHS7900640 REV TUITION DED6991945NONPUBLIC TRANSPORTATION7310675 APPR PRIV SCH ADJ6991946NP TRANSP BAL DUE7310676 PA CHARTER SCH 544NP TRANSP ADJ7310975 PA CHARTER SCH ADJ6991545TECH INITIATIVE (YSYM)7599794 CS TRANSITIONAL7140791IU OPERATING7120690 ACT 89 NP7700565PERFORMANCE INCENTIVES7150692 RENTAL SUBSIDY7320575PHILA SCHOOL DIST7599666 IU TRANSPORTATION7310580RETIREMENT7820726 SD TRANSPORTATION7310581SOCIAL SECURITY7810725 SD TRANSP BAL DUE7310582REIMB OF ADDT BASIC7340540 SD TRANSP ADJ7310981VOCATIONAL ED7220751 PA CHARTER SCH543VOCATIONAL ED ADJ7220951 APPROVED PRIVATE SCH 546TRAVEL VOC ED7220754 SP ED CORDERO7271585LPN PROGRAM7220755 IU SP ED EXTRAORD7271586ADULT VOC ED7220756 IU INSTITUTION CH7271589DRIVER ED7240775 IU SP ED ADJ7271990EDUCATION ASSISTANCE7291771 SD SPECIAL ED7271591EDUCATION ASSISTANCE7291770 TUITION TRANSFER6944592DISTRESSED SD7110780 SD SPECIAL ED ADJ7271991DISTRESSED SD ASST7110781 PRRI SPECIAL ED ADJ7299994EMPOWERMENT SD7170782 SD SP ED EXTRAORD7271593TEMP SPEC AID7299802 IU SP ED CORE SERV7271594APPR PRIV S AUDIT 998 SP ED REV TUIT DED6991947APPR PRIV S AUDIT795 SP ED WARDS OF STATE7271598

28. DEDUCTION DESCRIPTIONS AND CODES