Spring Finance Workshop

1
SPRING FINANCE WORKSHOPApril, 2005
2
2005 Spring Finance Workshop

• .If you had to identify, in one word, why the
  human race has not achieved, and never will
  achieve its full potential, that word would be
  meetings.

3
Agenda

• 900-910 Sign-up, Pick Up Materials
  Introduction
• 910-1015 Accounting Issues
• 1015-1030 Break
• 1030-1100 Membership Issues,
• 11001200 Transfer of Service, Summer
  School, Debt Reporting, Legislative
  Update, Odds and Ends.

4
First, a Note of Thanks to You!!!

• Over the past several years, the Finance Team has
  radically changed the way districts report their
  data and we wish to thank you for the way
  youve responded to the changes with helpful
  comments and suggestions and very few complaints.
  We know it hasnt been easy, but really
  appreciate your helpfulness and support as the
  changes were made.

5
Thanks!

• If we could, we would give a certificate of
  appreciation to every one who has submitted one
  of the reports
• Instead, well give all of you a sincere thank
  you and our promise that well always listen to
  your comments and concerns, and continually
  strive to keep your local district perspective in
  mind as we develop new things.

6
Finance Staff
7
Handouts.

• 2005-06 Early Aid Estimate district specific
• 2004-05 Aid Membership Data Sheet - district
  specific
• 2004-05 Preliminary Final Revenue Limit
  Worksheet district specific
• Special Education Coding Chart
• Tuition Waiver Flow Chart/Calculating Membership
• School Finance Web Page/Staff Contacts
• PowerPoint Slides.

8
2005-06 Early Aid Estimate handout

• This is a preliminary aid estimate using state
  factors from the Governors Biennial Budget
  proposal, and local factors including
• Shared cost computed from your districts 2004-05
  un-audited budget report
• Un-audited PI-1563 Pupil Count Report
• 2004 Fall Tax Apportionment Equalized Values.

9
2005-06 Early Aid Estimate handout

• It is to be used as a rough estimate only, and
  may change depending on a number of factors,
  including
• Shared cost from your districts annual report
  changing significantly from the budget report
• Equalized values in May changing from last falls
  values
• A membership audit changing your districts FTE
• The Legislature changing the Governors proposal.

10
2004-2005 Membership Data On DPI Database
handout

• This is your districts membership data that we
  have on the database from 2004-05 please review
  and let us know if you have something different
• Its what we use to estimate 2005-06 Equalization
  Aid
• It should be the same number thats on your
  2005-06 Aid Estimate handout.

11
2004-05 Preliminary Final Revenue Limit
Worksheet handout

• This is our final data check prior to issuing the
  final final revenue limit worksheet in May
• We ask that you review your districts data to
  make sure it agrees with what you have in your
  worksheets
• It is the base for your districts 2005-06
  Revenue Limit Worksheet
• Please let us know if you have questions or need
  to make changes.

12
What Were Up To

• Internet Reporting
• PC-401, SD-401, PI-1408 project
• Aid Certification project
• Improving Our Service
• Using the Survey Monkey to get ideas from you
  where we need to improve
• Providing a weekly listserv message
• Attending WASBO Regional Meetings
• Attending WASBO Board of Directors meetings
• Working with WASBO WASDA to provide information
  at conferences and seminars.

13
Finance Team/DOR Project A New, Improved Way
to Report Your Levy

• ..Ever hear of the 50-50-90 rule? Anytime you
  have a 50-50 chance of getting something right,
  theres a 90 probability youll get it wrong.....

14
A New, Improved Way to Report Your Levy

• Weve started to work on a project with Dept. of
  Revenue linking the PC-401, SD-401 and PI-1508
  into one internet application.
• It will allow you to input your levy information
  once, and the program will automatically generate
  the data needed by the other reports.

15
A New, Improved Way to Report Your Levy

• A district will input its levy information into
  the SD-401, which is the breakdown of the levy
  into funds 10, 38, 41, etc.
• Edits will be built in, so if a district doesnt
  have a Fund 41, for example, it wont be allowed
  to enter a number.

16
A New, Improved Way to Report Your Levy

• The total levy data will populate the PC-401,
  which is what the Department of Revenue needs.
  This is a breakdown of the districts total levy
  by municipality.
• The municipality information and percent of each
  in your district is pre-populated by DOR, and the
  pro-rations will be automatically calculated.

17
A New, Improved Way to Report Your Levy

• The info from the SD-401 and PC-401 will
  automatically generate the tax levy certification
  form (PI-1508) that districts send to each
  municipality in the school district.

18
A New, Improved Way to Report Your Levy

• Benefits to districts easier input via the
  internet, accurate levy information less chance
  for error.
• Benefits to DPI and DOR accurate, up-to-date
  information.
• We anticipate it will be available this fall.

19
.what else were up to.

• Debt Tables on-line input via the Reporting
  Portal, it then interacts with Budget and Annual
  Reports.
• Equalization Aid Calculation the goal is to
  have an automatic calculation after completing
  annual and budget reports.

20
Internet Reporting Changes

• Referenda Reporting
• Long-Term Debt Reporting
• SAFR Reporting Issues
• ...nobody cares if you cant dance well just
  get up and dance

21
Reporting Referenda

• the trouble with doing something right the first
  time is that nobody appreciates how difficult it
  was

22
Reporting Upcoming Referenda and Results

• Districts must notify DPI of upcoming referendum
  within 10 days of adopting the resolution via the
  DPI Reporting Portal
• - go to your districts home page and click on
  Financial Data Home, then Referenda
• Forms PI 1572-A and PI 1572-B are no longer in
  paper form.

23
Reporting Upcoming Referenda and Results (cont)
Click to add details for upcoming referendum
24
Reporting Upcoming Referenda and Results (cont)

• The information required is same as what was
  requested on paper Form PI 1572
• --District contact
• --Purpose of borrowing or use of revenue
  limit dollars
• --Actual wording of resolution question
• --Actual results of election.

25
Reporting Upcoming Referenda and Results (cont)

• If its a debt referendum you need the dollar
  amount of the proposed borrowing
• If its a revenue limit referendum, you need the
  dollar amount of increases in revenue limit
  authority and number of years involved
• --Recurring exemption no end year
• --Non recurring exemption must list start and
  stop years and amounts for all years.

26
Reporting Upcoming Referenda and Results (cont)
27
Reporting Upcoming Referenda and Results (cont)
28
Referenda Filing Requirements

• Districts are also required to send to DPI a copy
  of the adopted resolution authorizing election,
  and
• A copy of board of canvassers statement which
  reports official vote tally within 10 days of the
  election
• They can both be faxed to Gene Fornecker, at
  608/266-2840, or mailed.

29
Referenda Statistics

• Users can access from our database listings of
  referenda that have passed or failed for both
  debt and revenue limit questions
• Data can be downloaded into EXCEL for statistical
  analysis purposes
• https//www2.dpi.state.wi.us/safr/all_referenda.as
  p

30
(No Transcript)
31
Reporting Long-Term Debt

• ...the one thing that unites all human beings,
  regardless of age, gender, religion, economic
  status or ethnic background, is that, deep down
  inside, we ALL believe that we are above average
  drivers

32
Reporting District Long-Term Debt, cont.

• The Finance Team is now asking all districts to
  notify DPI - via the reporting portal - any
  changes in their long-term debt repayment
  schedules
• Prepayments of principal, refinancing, and new
  loans will require adjustments by the district.

33
Reporting District Long-Term Debt, cont.

• Entering of debt amortization schedules was
  encouraged during the budget submission process
  but not required
• For the 04-05 Annual Report submission, Debt
  amortization schedules must be entered
• Find the Debt Tables in the Reporting Portal
• - go to your districts home page and click on
  Financial Data Home, then Debt Schedules

34
(No Transcript)
35
(No Transcript)
36
(No Transcript)
37
Reporting District Long-Term Debt, cont.

• The districts Annual Report will have built in
  edits to check the following
• 08B debt balances at beginning and end of year
• Function 281000, 283000, 289000 principal and
  interest amounts agree to debt schedules
• New debt proceeds will be verified against
  referenda database if Fund 39 debt.

38
Reporting District Long-Term Debt, cont.

• The districts Budget Report will also have built
  in edits
• Budget should reflect debt for the fiscal year
  July 1 to June 30 (not January 1 to December 31)
• 08B debt balances at beginning and end of year
  should equal balances as of July 1 and June 30
• Principal and interest amounts should agree to
  debt schedules for payments made between July 1
  and June 30.

39
SAFR Annual Report Filing Issues

• the law of probability dispersal states that
  whatever it is that hits the fan will not be
  dispersed evenly

40
Federal and State Aids Reconciliations, cont.

• What we do
• We take the appropriate Aids Register from the
  School Finance website and compare it to the
  districts audit report and annual report.

41
Federal and State Aids Reconciliations

• What we look for
• Improper use of revenue Source codes
• Addendum for receivables not allocated correctly
  between accounts
• Revenues not recorded in correct funds
• Year-end receivables dont agree with audited
  financial statements.

42
Federal and State Aids Reconciliations, cont.

• The SAFR Annual Report for 04-05 will include
  built in edits to verify the proper coding of
  certain federal and state grant revenues
• The Annual Report will identify errors which will
  need to be reconciled before Annual Report can be
  submitted
• A DPI worksheet will be included to help identify
  errors.

43
Coding Changes Effective for 2004-05 Fiscal Year

• Inter-fund receivables and payables will be
  allowable in all funds
• Social Work (function 212000) and Psychological
  Services (function 215000) will be allowable in
  Fund 10
• The cost of providing these services to regular
  ed students must be allocated to Fund 10 and
  these costs are no longer special ed aidable.

44
Audit Reports

• .If you go flying back through time and you see
  somebody else flying forward into the future,
  its probably best to avoid eye contact.

45
Past Due Audit Reports

• Only 30 of school districts submitted their
  2003-04 audited financial statements by the
  November 1 deadline
• Reasons for late filing included the GASB 34
  conversion and obtaining fixed asset
  inventory/appraisal/depreciation reports.

46
Past Due Audit Reports, cont

• Recommendations
• Dont wait until year end to contact appraisal
  company
• Submit fixed asset additions/deletions on
  periodic basis to be updated
• Work with your auditor to determine dates that
  appraisal reports are needed
• Confirm in writing with appraisal firm due dates
  necessary to meet report due date.

47
Past Due Audit Reports, cont

• Ramifications if reports are late in the future?
• Possible delayed payments of equalization and
  categorical aids

48
The Audit Is Significant!

• Annual Audit of district financial records is
  statutorily required
• District revenues, expenditures and pupil counts
  must be verified to ensure proper calculation and
  distribution of aids.

49
Selection of Auditors

• A thorough audit begins with selection of
  auditors with sufficient experience with DPI
  compliance requirements and governmental
  regulations.

50
Selection of Auditors (cont)

• Request for Proposal (RFP) from auditors can be
  specific as to desired qualifications
• Number of school districts audited
• Number of hours for the audit engagement in total
  and number of hours spent on district premises
• Number of staff assigned
• Cost of audit and related services.

51
Cost of Audit

• Cost SHOULD NOT BE the main factor in granting
  audit contract
• Other factors to consider
• Auditors experience with school districts
• Number of hours actually spent on district
  premises vs in their offices
• Areas to be examined (student activity accounts,
  student fees, trust funds)
• Availability for consultation during the year.

52
What is a quality audit?

• Focus should be on areas of high risk
• Student activity funds, food service fund, and
  areas involving decentralized cash collections
• Federal and state compliance requirements
  including DPI grant programs
• Other areas where the district feels may have
  loose internal controls
• District management should jointly discuss areas
  of risk and audit focus with audit team.

53
FRAUD

• Fraud is both a misappropriation of assets as
  well as misstatement or manipulation of numbers
  in the financial statements
• Fraud occurs because of poor internal controls
  in 60 of the cases
• Fraud is discovered most often by good internal
  controls.

54
Managements responsibility

• Management is responsible for overseeing the
  activities carried out by employees and does so
  by implementing and monitoring processes and
  controls.

55
Prevent and Deter Fraud

• The AICPA has identified the following items as a
  means for organizations to reduce fraud within
  their organizations
• Create and maintain a culture of honesty and high
  ethics
• Evaluate the risks of fraud, and implement risk
  mitigation
• Develop an appropriate oversight process.

56
TEN REASONS CONTROLS BREAK DOWN John Hall -
Hall Consulting

• Blind Trust
• Willfull Blindness
• Ignoring Control Implications of Policies,
  Procedures and Reports
• Ignoring Behavioral Indicators of Problems
• Situational Incompetence
• Not having information Needed to Assure
  Transactions are Accurate
• Not Questioning the Strange and Unusual
• The Process Mentality
• Not Enough Time to do the Procedures
• Conflict Avoidance

57
Questions?
58
Pupil Count It Only Seems Like 101 Ways to
Count Your Kids
Tuition Basic Reporting Pre - K Challenge
Academy Open Enrollment

• ..seen it all, done it all, cant remember most
  of it.

59
Tuition - District Paid Non OE

• Regular education tuition amount
• - Currently estimated at 5,558
• - Amount will be finalized in May of 2005
• Special education tuition amount
• Calculate using the tuition worksheets
• Districts use the 66.03 agreement

60
Tuition - District Paid, contd.

• Special education tuition for Open Enrollment
  students
• Use the tuition calculation forms, PI-2092
• Utilizes open enrollment regular tuition
• Add any new special education student-specific
  costs
• Do not pro-rate or average current costs.
• Contact Mary Jo Cleaver, Open Enrollment
  Consultant, 267-9101, with questions

61
Tuition - Parent Paid

• Regular education tuition
• Set by law at an amount equal to the open
  enrollment amount (5,558)
• Amount will be finalized in May of 2005
• Special education tuition
• Should use open enrollment calculation

62
(This slide is not in your handout)
What about Transit of Aid for Open Enrollment
Special Ed Pupils?

• Open Enrollment tuition should not normally
  require a transit of aid. We would not expect
  categorical aid to be paid to the resident
  district unless a new cost was directly
  identifiable with the pupil.
• If there is an identifiable additional new cost
  directly attributed to the student, then all
  categorical aid generated from that cost should
  be transited. For example an aide assigned
  specifically to the open enrolled pupil would
  suggest that the resident district be transited
  the categorical aid generated.
• However the statutes still allow for "an
  agreement between districts." So at the very
  least, it is suggested that districts consider
  the categorical aid when they make their
  agreement.

63
Basic Reporting

• First The Concept (Using the Wizard)
• Start by counting all pupils actually educated by
  the district
• Subtract out non-residents
• Subtract out residents who are not full-time or
  age appropriate
• Add in residents attending elsewhere for which
  the district is paying the cost of full-time
  tuition
• Provide additional requested information.
• (needed so we can make proper adjustments)

64
Basic Reporting, cont.
Definition - Present" The pupil is in
attendance for instruction on the count date. If
any pupils are absent on the count date, they can
still be counted if they have attended at least
one day during the school year prior to the count
date and at least one day during the school year
after the count date, and have remained a
resident of the district during the period of
absence.
65
Basic Reporting, cont.

• Preschool Special Education
• Students must be at least 3 years old as of the
  count date
• Must have an IEP and be receiving special
  education services
• No minimum length in class time.

66
Basic Reporting, cont.

• 4-Year Old Kindergarten
• The 4-Year Old Kindergarten programs shall have
  at least 437 hours of instruction, which can
  include up to 87.5 hours of outreach activities
• NOTE Pupils must be at least 4 years old on or
  before September 1st.

67
Basic Reporting, cont

• 4-Year Old Kindergarten with additional 87.5
  Hours of Outreach
• With a minimum of 437 hours of direct pupil
  instruction AND an additional 87.5 hours of
  outreach activities, the 4-Year Old Kindergarten
  program can be claimed for 524.5 hours. The
  school shall NOT substitute instructional time
  for outreach activities.
• NOTE Pupils must be at least 4 years old on or
  before September 1st.

68
Basic Reporting, cont

• 4 Year Old Students
• We will need additional information about pupils
  that are 4 years old
• 4 year old Kindergarten how many are also
  receiving special education services?
• Pre School Special Education how many are 4
  years old? The rest in the program are other than
  4 (probably 3 or 5).

69
Special Situations - Pre School and Kindergarten
Students

• No student may be counted in more than one
  category.
• - No student may be counted more than once.
• Example A four year old student enrolled in 4
  year old KG who also receives preschool special
  education services cannot be counted in both the
  preschool and 4 year old KG programs.

Four year old KG students who also receive
preschool special education should be counted in
the 4 year old KG program.
70
Special Situations- 5 Year old Kindergarten
Students
How long must a full day kindergarten program be?
The answer can be found in s.121.004(7) Wis.
Stats. program requiring full day attendancefor
an entire school year full day means the
length of the school day for pupils in the first
grade of the school district operating the
5-year-old kindergarten program.
71
Membership Report Amendment Process

• Throughout most of the year, simply go into the
  Reporting Portal and make the change.
• Districts wishing to amend their pupil count
  report after the audit notice is announced in
  February, or after the audit report is received,
  will need to contact DPI before going into the
  Reporting Portal..

72
Membership Report Amendment Process

• Districts Required to have a membership audit In
  conjunction with the auditor, make audit changes
  through the reporting portal by changing original
  data. Auditor must concur in writing to any
  changes made subsequent to the audit.
• Districts NOT Required to have a membership
  audit Any changes to the PI-1563 Pupil Count
  Report will be made by the district via the
  School Finance Reporting Portal. Please send an
  email to DPIsfsreports_at_dpi.state.wi.us
  indicating which count date, what changes are to
  be made and why, and contact info. You will be
  contacted as to when the reporting portal will be
  open for you to make an amendment to the
  appropriate report.
• Questions should be directed to Janette Gosdeck
  by email at janette.gosdeck_at_dpi.state.wi.us. or
  by phone at 608-267-9218.

73
Youth Challenge Academy

• For both count dates, each school district that
  has students attending the Academy is notified by
  the Department of Military Affairs.
• School should not count students attending the
  Academy, but an adjustment will be made at the
  end of the year by DPI.
• Schools will get aid membership for the current
  year.
• Unless students were attending on the September
  count date and therefore included in the Pupil
  Count, schools will get revenue limit membership
  the following year.
• Schools are responsible for Academy costs for all
  pupils who are enrolled past the first two-weeks
  of the program.

74
Tuition Waivers

• after all is said and done, more is said than
  done

75
Tuition Waivers 3 types

• Current Year Permissive
• School District of Attendance (nonresident
  district) counts the student in membership.
• Current Year Mandatory
• School District of Attendance (nonresident
  district) counts the student in membership.
• Additional Year Mandatory
• Resident School District counts the student in
  membership.
• For regular education, DPI transfers aid
• For special education, resident district pays
  tuition

76
Current Year Mandatory

• Student moves from District A to District B
• 3rd Fri in Sept
• through
• open enrollment deadline in Feb

If student has been in District A for at least 20
days and was counted on either count day,
district is required to allow student to
continue for the remainder of the school term.
District B is not involved. District A will
consider the student a resident. The student has
no right to continue next year unless they go
through the formal Open Enrollment process in
February. Next year, if student continues as an
Open Enrolled student, District B will pay and
count the student as a resident. (Open Enrollment)
77
Additional Year Mandatory

• Student moves from District A to District B
• After open enrollment deadline in Feb
• through
• June 30th

District A is required to allow student to
continue for the remainder of the school term.
District B is not involved. (current year
mandatory) To continue in District A in the
following year, the student must go through the
Tuition Waiver process. Next year, student
continues as if they were Open Enrolled.
District B will pay and count the student as a
resident. (additional year mandatory) To
continue for another year, student must go
through the formal Open Enrollment process in
February.
78
Tuition Waiver Choice

• Student moves from District A to District B
• July 1st through the September count day

• District A has two options- both allow student to
  continue for the remainder of the school term.
• District A can simply allow student to continue
  for remainder of school term. District A counts
  student and District B is not involved. (Current
  Year Tuition Waiver)
• District A can require student to go through
  Tuition Waiver - In this case, student
  continues as if open enrolled where District B
  pays and counts student. (Additional Year Tuition
  Waiver)
• To continue in District A in the following year,
  the student must go through the formal Open
  Enrollment.

79
Open Enrollment Tuition Waiver

• As always, the most common cause of an error
  related to Open Enrollment is the result of a
  failure to communicate!
• June 30 - Each non-resident school district that
  has accepted pupil(s) must report the name of the
  pupil(s) who will attend the non-resident school
  district in the following year under open
  enrollment (including continuing open enrollment
  students) to the resident school district(s) and
  the DPI.
• September (Third Friday). Resident and
  nonresident districts should exchange information
  about open enrolled students.

80
Open Enrollment Tuition Waiver, cont.

• September April - After the third Friday in
  September and from time to time after that, DPI
  will send information to schools with pupil open
  enrollment information.
• Try to reconcile this information with the other
  districts before contacting DPI with changes.
• DPI Open Enrollment Contact
• Mary Jo Cleaver, Consultant (Public School Open
  Enrollment), [phone] maryjo.cleaver_at_dpi.sta
  te.wi.us

81
CALCULATING MEMBERSHIP
82
Summer School Spring 2005
PI 1804 Summer School Form
March Summer school Transportation letter
February Summer School Letter
83
Summer school is included as part of a districts
membership audit.

• Auditor will test to see that FTE computation is
  done properly
• Auditor will question fees
• Summer School starts a school year
• Full FTE credit for aid membership
• 40 FTE credit for revenue limit membership.

84
Summer School - Transportation

• Are school districts required to provide summer
  school transportation?
• No, but if they do
• No part of such costs may be charged to the
  pupils or their parents or guardians s.
  121.54(8).
• A district can charge a transportation fee for
  short distances as allowed under s. 121.545(1).
• Parents may enter into a personal contract with a
  private bus company
• Section 118.04 (4) does not allow districts to
  charge fees for summer classes or programs which
  are either credited toward graduation or aided
  under s. 121.14. This includes fees for
  transportation, shuttling, and food and lodging
  for off-campus activities.

85
Summer Transportation

• School boards may establish and collect
  reasonable fees for social, recreational or
  extracurricular summer classes and programs which
  are neither credited toward graduation nor
  eligible for state aid s.118.04(4). School
  boards may also provide and charge for
  transportation for extracurricular activities
  such as school athletic contests, school games,
  after school practice, late activity, school
  outings or extracurricular school field trips s.
  121.54 (7).
• Such activities are not eligible for state aid or
  categorical aid under current law.
• Dont claim summer school minutes

86
Summer School Attendance at Fairs or
Expositions including Conventions

• Student attendance on its own is not an aidable
  activity so fees can be charged.
• -However-
• Providing instruction to students at such an
  event may be permissible for summer school
  membership (PI 17). Students may not be charged
  fees, including transportation to any event that
  has an instructional component.

87
Summer School Reminders/Clarifications

• The 2004 Summer School Membership Report
  (PI-1804) must be filed electronically. For
  audit purposes, retain a copy of the report,
  including all worksheets, and file these reports
  in your office with your PI-1563 Pupil Count
  Report.
• Membership audits may include a review of fees,
  teacher certification, and course eligibility.

88
Summer School Reminders/Clarifications

• Districts offering driver education may claim
  membership ONLY if there is no cost to the
  student for instruction or for use of the
  automobile (i.e., insurance, gas, and rental).
• The program must be an approved DPI driver
  education program.
• Districts may contract with another public
  school, private high school, technical college
  system, CCDEB, or CESA providing the district
  maintains ownership of the approved program,
  remains the fiscal agent, submits the program
  approval applications under the districts name,
  and neither the district nor contractor charges
  student fees beyond textbooks or similar
  instructional materials.

89
Summer School Reminders/Clarifications

• All courses must be taught by a DPI-licensed
  teacher, with the exception of swimming.
  Swimming programs may be taught or directed by
  DPI licensed teachers.
• Special education services, such as PT/OT and
  S/L, may not be claimed as a summer school
  academic course. Additionally, students with an
  IEP requiring extended school year (ESY)
  services, may not be counted towards summer
  school membership.

90
Summer School Reminders/Clarifications

• The summer school Question and Answer document
  should be reviewed and is available on our DPI
  web site. This document, as well as the
  PI-1804-W1 and PI-1804-W2 can be found at
  http//www.dpi.state.wi.us/dpi/dfm/sfms/summ_sch.h
  tml.
• General summer school questions may be directed
  to Nancy Mueller at 608-266-8938
  (nancy.mueller_at_dpi.state.wi.us).
• Questions concerning financial reporting should
  be directed to Brad Adams at 608-267-3752
  (bradley.adams_at_dpi.state.wi.us).

91
TRANSFER OF SERVICE

• .he who laughs last, thinks slowest.....

92
Transfer of Service, cont.

• Transfer of Service is
• a recurring exemption to the revenue limit
• based on WI Stat. 121.91(4)(a)
• an increase on the local tax levy
• NOT a payment from the State
• NOT a payment from another district

93
Transfer of Service, cont.

• What Transfer of Service does
• helps the district cover unexpected costs for
  incoming Spec Ed/ESL (English as a Second
  Language) transfers
• helps the district cover the cost of new
  operation expenses that were once provided by
  another municipality.

94
Transfer of Service, cont.
http//www.dpi.state.wi.us/dpi/dfm/sfms/transerv.h
tml
95
Transfer of Service, cont.

• A district must apply to DPI during the month of
  June but before July 1 on form PI-5001
• Fill out part A with your cost increases
• Send part B to the district the student came from
  (do this now) get it back prior to sending it
  to DPI
• If there is a reduction in cost, it must be
  reported in part B.
• New this year were asking all districts to fill
  out the PI-5001 S form the last tab in the
  worksheets a Summary of the total request.

96
Transfer of Service, cont.
Summary Sheet
New in 2005-06 Due to the volume of requests, we
are requiring that all districts sort their
transfers by category (special education, LEP,
and otherr gov't unit), bundle, and compute
totals by category. Include the summary sheet in
your packet and submit in June, 2005, before July
1. Due to the volume of requests, the deadline is
firm.
97
Special Education Issues

• maybe in order to understand mankind we have to
  look at the word itself MANKIND. Basically, its
  made up of two separate words mank and ind.
  What do these words mean? Its a mystery and
  thats why so is mankind.

98
Special Education IssuesCoding Update

• Coding for Specialty (Adaptive Education/Transitio
  n) Teachers
• Coding for Psychologist/Sociologist/Guidance
  Costs
• 3rd-Party Federal Grant Coding
• Special Education Coding Refresher
• (.you can never know enough.)

99
Special Education IssuesCoding for Adaptive
Education Teachers
806 Adaptive Physical Ed 861 Music Spec Ed 862
Art Spec Ed 863 Family Consumer Ed Spec
Ed 864 Technology Education Spec Ed 865
Business Education Spec Ed 866 Agriculture
Education Spec Ed 867 Marketing Education
Spec Ed 868 Media (SEIMC)/CSPD Sped Ed 869
Vocational/Transition Spec Ed 871 Assistive
Technology Specialist
All special education teachers working in
adaptive education should be coded to function
159 300.
100
Special Education IssuesCoding for
Psychologist/Sociologist/Guidance Costs

• Effective in 04-05, psychologist (function
  215000) and social worker costs (function 212000)
  attributable to regular education students must
  be coded to Fund 10.

This is a change from past practice.
101
Special Education IssuesPsychologist/Sociologist/
Guidance Coding

• Carefully review the duties and student contact
  time for your psychologists, social workers, and
  guidance staff.
• Code salary benefit expenses for regular
  education student contact to Fund 10 code salary
  benefit expenses for special education student
  contact to Fund 27.

102
Special Education Issues3rd-Party Federal Grant
Coding - CESA
Vendor
Use Project 517 in expenditure coding when
purchasing item.

• District

When district receives the reimbursement check
from CESA, code revenue to Source 517.
Submit claim to CESA for reimbursement.
District
CESA
103
Special Education Issues3rd-Party Federal Grant
Coding - CESA

• Note the similarity between the project code in
  the expenditure and the source code in the
  revenue.
• This coding methodology translates to other
  transits Use project 317 to code expenditures
  for a Federal Grant Transited from another WI
  school district. When the revenue for this grant
  is received from another WI school district, code
  into Source 317.

104
Special Education IssuesCoding Refresher

• Refer to Handout in Your Packet
• For the Coding Refresher
• For Specific Coding Questions, See Special
  Education Claim Directions found at
• http//www.dpi.state.wi.us/dpi/dfm/sfms/se_report.
  html

105
Odds Ends

• As the light changed from red to green to yellow
  and back to red again, I sat there thinking about
  life. Was it nothing more than a bunch of honking
  and yelling? Sometimes it seems that way

106
Categorical Aid Pro-rations2005-06 Estimates

• Handicapped
• Special Ed/Transp 27.88
• Psych/Social Work 27.88
• Room and Board 27.88
• Hospital 100

Driver Education No Aid Common
School 19.52 Transportation 93.36 Bilingual/
Bicultural 11.41
107
School Finance Data Warehouse

• The Data Warehouse will soon have 2003-04 Annual
  Report Data loaded
• An often-heard concern is that the data is not
  always current thats because we only include
  final, audited data in the Data Warehouse and it
  takes us awhile to audit the data that districts
  submit.

108
Data Warehouse, cont.

• We are working to decrease the amount of time it
  takes to audit the annual reports
• For example, we finished auditing the 03-04
  annual reports in March last year it took until
  August to finish the 02-03 reports
• Our goal is to finish auditing the 04-'05 annual
  reports by January, with your help..

109
Parent Contract for Pupil Transportation s.121.55
Wisconsin Stats

• State law allows school districts to provide
  transportation by contracting with parents
• The amount of compensation is determined through
  negotiation between school district and parent
• If an agreement cant be found, the department
  will determine an amount using the calculation in
  Administrative Rule PI 7
• If the parent rejects the ruling, the school
  district must provide transportation.

110
Parent Contract for Pupil Transportation s.121.55
Wisconsin Stats

• For more information, go to the School
  Management Services Team website at
• http//www.dpi.state.wi.us/dpi/dfm/sms/index.html
  
• or contact Merry Larsen, Consultant,
• School Management Services Team 608-266-2146

111
Lets Talk About Fund Balance

• Districts received a letter from WASBO advising
  them to evaluate the amount of fund balance in
  the 933000 account
• It is our recommendation that fund balance be
  designated in either 931000 or 932000.

112
Fund Balance, cont.

• There are 3 fund balance accounts allowed in
  WUFAR
• 931000 Reserved - for encumbrances, inventories,
  advances to other funds, self-insurance,
  scholarships, debt retirement, next years
  budget, other
• 932000 Unreserved-Designated for which the
  district has identified tentative uses, including
  Working Cash (932 100) and Other Purposes
  (932 900)

113
Fund Balance, cont.

• 933000 Unreserved Undesignated the portion of
  fund balance that has not been appropriated for a
  specific purpose as a reserve or designated fund
  balance. At the end of a reporting period, this
  account will include the difference between
  revenues and expenditures until re-appropriated
  to another fund balance.

114
Fund 80

• We still get a number of questions about
  districts establishing a Community Service Fund
• District and their communities determine the
  appropriateness of the community service fund
• Guidelines as the DPI interprets the statutes and
  intent of the legislation are provided
• Please remember we dont approve of, or
  disapprove of, costs that may be included in Fund
  80, we simply provide information.

115
Legislative Update

• Following are some of the issues affecting school
  finance in the governors 2005-07 budget
  proposal
• The Legislature is currently determining changes
  to the governors proposal.

116
Governors 2005-07 Biennial Budget Proposals

• Increase school aids by 6.6 in FY06 and an
  additional 2.8 in FY07 to provide an additional
  700,000,000 over the biennium, bringing aid back
  to the 2/3 level again
• Increase SAGE aid from 2,000 per pupil to 2,250
  in FY06 and 2,500 in FY07
• Increase transportation reimbursement rates for
  pupils who travel more than 8 miles in FY06 and
  provide additional aid in FY07 to eliminate
  existing pro-ration of aid and to increase
  reimbursement rates for all travel distances
• Create High Cost Special Education program to
  help offset costs of children with high-cost
  special needs, reimbursing 90 of special
  education costs in excess of 30,000 per student

117
Governors 2005-07 Biennial Budget Proposals

• Provide grants to support a 4-year-old
  kindergarten start-up program up to 3,000 per
  pupil in the first year and up to 1,500 per
  pupil in the second year
• Increase school breakfast reimbursement rates
  from 10 cents to 15 cents
• Repeal the authority of a school district to
  avoid binding arbitration by offering a QEO to
  its employees
• Recommends setting a school districts revenue
  limit at the greater amount determined by using
  either a 3-year or a 5-year rolling average of
  pupil FTE

118
Governors 2005-07 Biennial Budget Proposals

• Increase the low revenue ceiling exemption from
  7,800 in FY 05 to 8,100 in FY06 and 8,400 in
  FY07
• Allow districts to carry forward to the next
  school year 100 percent of any unused revenue
  limit authority in the current year
• Create a categorical aid to support the costs of
  establishing mentor programs for initial
  educators in school districts
• Expand the national teacher certification grant
  appropriation to include grants for individuals
  who receive master educator licenses under PI-34.

119
Thank you!

• Please call us with questions or comments!
• Brad Adams, Consultant, 267-3752
• David Carlson, Director, 266-6968
• Gene Fornecker, Auditor, 267-7882
• Kathy Guralski, Auditor, 266-3862
• Karen Kucharz, Consultant, 267-9707
• Jerry Landmark, Assistant Dir., 264-3464
• Natalie Rew, Auditor, 267-9212

120

• Visit our web site
• www.dpi.state.wi.us/dpi/dfm/sfms