11th Annual WASBO Accounting Seminar

1
11th Annual WASBOAccounting Seminar

• Orientation for Staff New to the School Business
  Office

Presented By Mark VanDerZee, Director of
Business Services Menasha School District Natalie
Rew, CPA, DPI School Finance Auditor Gene
Fornecker, CPA, DPI School Finance Auditor March
21, 2007
2
Basic Guideposts for the New Business
Official
Thoughts Ideas shared from Experiences and
Networking
3
Guideposts for the New Business Officials

• Understand Your Role
• Build Relationships Networks
• Get to Know Your Resources
• Develop Your Personal Personnel Skills

4
Guideposts for the New Business Officials

• Understand Your Role
• Build Relationships Networks
• Get to Know Your Resources
• Develop Your Personal Personnel Skills

5
School Board

• Provides a Vision for Student Achievement shared
  by Board, Superintendent, Staff Community
• Approves Strategic Plan (Framework or Road Map)
  with Stakeholders Administration
• Adopts Goals to Support the Plan
• Communicates the Plan to Stakeholders
• Keeps the Vision at the forefront of all
  Decisions

6
Superintendent Business Official

• Recommends Visionary Strategies
• Provides Information Recommendations
• Ensures the Integrity of the Planning process
• Implements the Boards plan
• Ensures the Boards plan is carried out
• Works to ensure that the Vision Mission is
  kept in the forefront of all Decisions

7
Guideposts for the New Business Officials

• Understand Your Role
• Build Relationships Networks
• Get to Know Your Resources
• Develop Your Personal Personnel Skills

8
Building Relationships Networks

• Develop Rapport with Key Staff -first (1st)
  order of business -fastest way to get you up
  to speed
• Interview your Staff -get a sense of what all
  they can do -backup is essential in PR, AP,
  technology, etc.
• Surround yourself with Competent Staff -you are
  only as good as those that work for you
  -assess strengths weaknesses -work with each
  as individuals

9
Building Relationships Networks

• Depart from Business as Usual -stress
  innovation new ways of doing business
  -support create safe environment for risk
  taking -ask staff what 2 things they would
  change and why
• Establish bases of Support -process issues
  build support from Supt. Board -review
  intentions before implementing -make
  him/her/them feel a part of the process
  -participation in the process builds trust
  confidence
• Discuss with Supt. what Issues are Important
  -identify any sacred cows

10
Building Relationships Networks

• Provide Support for your Staff -show support
  for your staff often -everyone likes positives
  strokes when deserved
• Create networks with Local business managers
  -they are invaluable resources -they provide
  understanding support
• Get Involved with Your State Association
  -WASBO, SAA Other Associations pay dividends
  -Participation is its own Reward

11
Basic Guideposts for the New Business Officials

• Understand Your Role
• Build Relationships Networks
• Get to Know Your Resources
• Develop Your Personal Personnel Skills

12
Local Resources

• Board Vision, Mission, Goals Policies
• District or Administrative Policies Procedures
• District Labor Contracts
• Local Ordinances
• Other Governments Community Resources
• Local Vendors Contractors
• Local Web Resources
• Students, Parents Staff

13
State Federal Resources

• WI Statutes
• Department of Public Instruction (DPI)
• School Administrators Alliance (SAA)
• WASBO, WASDA, WASB, WERC, SNA, etc.
• No Child Left Behind (NCLB)
• National School Lunch Program
• Special Education (IDEA)
• Transportation
• Professional Web Resources

14
Budget Accounting

• Local, State Federal Funding
• State Revenue Limits
• Local Tax Levy History
• State Aid Formulas
• LT ST Borrowing History
• Local Staffing History
• Enrollment History

15
Basic Guideposts for the New Business Officials

• Understand Your Role
• Build Relationships Networks
• Get to Know Your Resources
• Develop Your Personal Personnel Skills

16
Personal Personnel Skills

• Be Visible Approachable as a Manager -get out
  in the school environment
• Adopt a Decision-Making Process -find out how
  decisions are made -search out models if none
  currently exist
• Flexible but Consistent Decisions
• Creative yet Disciplined Decisions -Dont shoot
  from the Hip -Dont assume anything -Take
  time to analyze assess -3 Ps Process
  Process Process -Anticipate the impact of the
  decision before you do it. -Stay balanced

17

• DECISION MAKING
• is arguably the most critical component of
  business success, yet it remains the least
  understood and most commonly mishandled aspect of
  all
• senior management
• responsibilities.
• Michael Menard
• MWorld Spring 2003
• American Management Association

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Personal Personnel Skills

• Set Goals for Yourself Department -limit to 2
  or 3 goals -accomplish do them well
  -initial impressions last a long time
• Dont try to Control Everything -may actually
  lose control -may go insane trying
• Dont Try to Do Everything -delegate
  responsibility -hold staff accountable

19
Personal Personnel Skills

• Look at the BIG picture -dont get mired in
  minutia -keep your eye on the end result
• Dont be Afraid to Admit mistakes -its OK to
  say I dont know and -I will find out the
  answer get back
• Know your Limitations -you cant be expert on
  everything no one expects it! -have a general
  sense about whats going on -know a little
  about a lot of things

20
Why dont you want to knock on your Business
Managers door?

• 10 I never know what negative surprises are
  awaiting me.
• 9 He/she thinks they are too busy!
• 8 He/she always wants more information than I
  have.
• 7 I dont want to report an error or fail to
  anticipate needs.
• 6 Theres NO money () to be found.
• 5 I dont want to admit I cant handle the
  problem.
• 4 Theres no time! I am secretary, nurse,
  lunch coordinator, etc.
• 3 He/she doesnt take food service seriously.
• 2 He/she doesnt have a clue what I do each
  day.
• 1 My Bus. Mgr. has the warmth of a snow
  drift!

SNA Wisconsin Fall Education Conference November
11, 2005
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Personal Personnel Skills

• Be Friendly Greet People with a SMILE! -even
  when you are up to your armpits in alligators!
• Maintain a Sense of Humor! -everything is
  relative!

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School Business Management is not Easy!

• Strength
• Wisdom
• Courage
• Persistence
• Perseverance

SUCCESS
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SCHOOL FINANCIAL SERVICES HOMEPAGE
All School Financial Services related resources
in alphabetical order. SAVE THIS PAGE AS A
FAVORITE www.dpi.wi.gov/sfs/index.html
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WUFAR and Government Accounting
25
FUND

• A fiscal and accounting entity with a
  self-balancing set of accountswhich are
  segregated for the purpose of carrying on
  specific activities in accordance with special
  regulations, restrictions, or limitations

26
FUNDS

• General Fund Operating fund-Day to day business
  not required to be reported in another fund (fund
  10)
• Funds used for a specified purpose
• Special Revenue (Fund 21-29)
• Debt Service (Funds 38 - 39)
• Capital Projects (Funds 41 - 49)
• Fiduciary (Fund 72 - 73)
• Agency (Fund 60)
• Community Service (Fund 80)
• Cooperative (Fund 90)
• Proprietary funds Business type activities -
  Food Service (Fund 50)

27
GENERAL FUND

• FUND 10
• Financial transactions relating to the
  districts day to day business operations not
  required to be accounted for in other funds.

28
SPECIAL REVENUE FUNDS

• FUND 21
• GIFTS AND DONATIONS RECEIVED FROM PRIVATE
  PARTIES THAT CAN BE USED FOR DISTRICT OPERATIONS
• FUND 23
• ANY REMAINING TEACH FUND BALANCE BEING USED TO
  MAKE PAYMENTS ON A TEACH LOAN. NO NEW TEACH
  MONEY
• FUND 27
• SPECIAL EDUCATION AND RELATED SERVICES FUNDED
  WHOLLY OR IN PART WITH STATE OR FEDERAL SPECIAL
  EDUCATION AID
• FUND 29
• SPECIAL REVENUE K-12 INSTRUCTIONAL PROGRAMS NOT
  REQUIRED TO BE REPORTED IN OTHER SPECIAL REVENUE
  FUNDS Federal Indian Education Head Start
  used for K-12

29
CAPITAL PROJECTS FUNDS

• FUND 41
• Recording capital expenditures financed
• through an expansion tax levy.
• FUND 48
• Recording capital expenditures financed through
  a TIF district. (No districts in Wisconsin
  currently use 48)
• FUND 49
• Recording capital expenditures financed through
  bonds, promissory notes , State Trust funds
  Loans, Or Land Contracts. Most Common.

30
OTHER SPECIAL PURPOSE FUNDS

• FOOD SERVICE FUND - FUND 50
• ACCOUNT FOR THE DISTRICTS ACTIVITIES RELATING
  TO PUPIL AND ELDERLY FOOD SERVICE (May be a
  business type activity)
• COMMUNITY SERVICE FUND - FUND 80
• ACTIVITIES WHERE THE PRIMARY FUNCTION IS TO
  SERVE THE COMMUNITY ADULT EDUCATION, DAY CARE,
  COMMUNITY POOL (Open to everyone in the
  community)

31
TRUST FUNDS

• ASSETS HELD BY THE DISTRICT IN A TRUSTEE
  CAPACITY FOR INDIVIDUALS AND PRIVATE
  ORGANIZATIONS
• FUND 72
• ACCOUNTS FOR GIFTS AND DONATIONS SPECIFIED FOR
  THE BENEFIT OF PRIVATE INDIVIDUALS AND
  ORGANIZATIONS NOT UNDER THE CONTROL OF THE SCHOOL
  BOARD - SCHOLARSHIPS
• FUND 73
• ACCOUNTS FOR RESOURCES HELD IN TRUST FOR
  FORMALLY ESTABLISHED OTHER POST EMPLOYMENT
  BENEFITS PLANS (OPEB)

32
PACKAGE AND COOPERATIVE 66.03 PROGRAM FUNDS

• MULTIDISTRICT PROGRAMS FOR WHICH IT IS NECESSARY
  TO KEEP A SEPARATE RECORD OF ACTIVITY SO THAT
  PARTICIPANT DISTRICTS SHARE CAN BE DETERMINED
• WRITTEN COOPERTIVE 66.03 AGREEMENT
• FUND 91 - EXPENDITURES MADE BY A HOST DISTRICT
  FOR PROGRAMS MADE AVAILABLE TO OTHER DISTRICTS
  THROUGH A CESA
• FUND 93 - TEACH LOAN CONSORTIAM
• FUND 99 - ALL OTHER TYPES OF COOPERATIVE
  INSTRUCTIONAL FUNDS- NO SPECIAL EDUCATION

33
PACKAGE AND COOPERATIVE PROGRAM FUNDS

• FUND 91 - EXPENDITURES MADE BY A HOST DISTRICT
  FOR PROGRAMS MADE AVAILABLE TO OTHER DISTRICTS
  THROUGH A CESA
• - CESA MAKES THE PACKAGED SERVICES AVAILABLE TO
  THE DISTRICT
• - REVENUE CESA PAYS HOST DISTRICT FOR FULL
  COST OF PROGRAM
• - REVENUE MUST EQUAL EXPENDITURES

34
TWO PARTS OF ACCOUNTING SYSTEM

• BASIS
• WHEN SHOULD WE RECORD THE TRANSACTION IN
  ACCOUNTING RECORDS
• CLASSIFICATION
• WHAT ACCOUNT CODE SHOULD WE USE TO RECORD A
  TRANSACTION IN ACCOUNTING RECORDS

35
WUFAR ACCOUNTING SYSTEM

• STATUTORY REQUIREMENT 115.28(13) PRESCRIBE A
  UNIFORM FINANCIAL FUND ACCOUNTING SYSTEM
• MUST BE USED FOR ALL FINANCIAL REPORTS SUBMITTED
  TO THE DPI
• ANNUAL REPORT
• BUDGET REPORT
• SPECIAL ED

36
WUFAR

• UPDATED AT LEAST TWICE A YEAR - Last updated
  September 2006
• Next update May 2007
• PRINT IT OUT

37
WUFAR ACCOUNTING SYSTEM

• PROVIDES CONSISTENT REPORTING FOR COMPARABILITY
  FROM YEAR TO YEAR AND BETWEEN DISTRICTS(UNIFORMITY
  )
• DISTRICTS ARE NOT REQUIRED TO USE WUFAR AS
  ACCOUNTING SYSTEM (HIGHLY RECOMMENDED)
• ACCOUNT STRUCTURE CAN BE MODIFIED TO MEET LOCAL
  INFORMATION REQUIREMENTS

38
ACCOUNT CLASSIFICATION

• WEBSITE LINK
• www.dpi.wi.gov/sfs/wufar.html
• WUFAR MANUAL
• ACCOUNT TITLES DESCRIPTIONS
• MATRIX
• ALLOWABLE ACCOUNT CLASSIFICATIONS BY FUND

39
WUFAR WEB LINK
40
BALANCE SHEET ACCOUNT CLASSIFICATION

• EVERY FUND HAS A BALANCE SHEET
• XX B 700 000 001 ASSETS
• FUND - ASSET ACCOUNT - YEAR
• XX B 800 000 001 LIABILITIES
• FUND - LIABILITY ACCOUNT - YEAR
• XX B 900 000 001 FUND BALANCE EQUITY
• FUND - LIABILITY ACCOUNT - YEAR
• 001 Beginning of the year , 002 End of the year

Remember Assets Liabilities Fund Balance
41
900 000 FUND BALANCE EQUITY

• Fund Balance Reserves and Designations
• THREE PARTS
• RESERVED 931 000 Segregation of fund balance
  for restricted purposes not available for
  appropriation
• DESIGNATED 932 000 Formal budgetary action to
  maintain working cash or other tentative uses.
• UNAPPROPRIATED UNDESIGNATED 933 000 Change in
  revenues over expenditures.
• ARE BUDGETARY APPROPRIATION ACCOUNTS REQUIRES
  BOARD APPROVAL
• CHANGES REQUIRE BOARD ACTION

42
Statement of Revenues and Expenditures

• REVENUES RECORDED WHEN AVAILABLE TO FUND
  CURRENT ACTIVITIES (KNOWN MEASURABLE)
• EXPENDITURES WHETHER WHAT YOU ARE PURCHASING
  CAN BE USED FOR CURRENT ACTIVITIES
• BEGINNING FUND BALANCE REVENUES EXPENDITURES
  ENDING FUND BALANCE

43
REVENUE

• PROPERTY TAX LEVY - FISCAL YEAR LEVIED
• STATE/FEDERAL AID FORMULA DRIVEN - YEAR
  ENTITLED
• STATE/FEDERAL AID REIMBURSABLE GRANTS
  CLAIMS BASED ON EXPENDITURES
• GIFTS/MISCELLANEOUS CASH COLLECTIONS
• RECEIVED AMOUNT

44
Revenue Account Coding

• REVENUE
• XX R XXXXXX XXX XXX
• FUND FUNCTION SOURCE PROJECT
• SOURCE Define revenue by its origin. Where did
  the money come from? Tax levy Federal Aid,
  Student fees, etc.
• PROJECT DPI reserves project codes 100-599
  (See aid register account codes) Use project
  codes above 600 to group internal projects.
• Typically no function
• Exception All Transfers-in must use a 4XXXXX
  function (See WUFAR)

45
Revenue Accounts SOURCES Per WUFAR

• All revenues, long term debt proceeds and
  interfund transfers-in must be coded as a
  SOURCE
• 100 - Interfund Transfers
• 200 - Local Sources
• 300/400 - School Districts
• 500 CESAS
• 600 State
• 700 Federal
• 800 Debt
• 900 Other
• See also the Aid register Coding of Federal and
  State Programs

46
EXPENDITURE RECOGNITION

• WHEN ITEMS ARE USED/PLACED IN SERVICE
• WHEN SERVICES ARE PROVIDED
• SUMMER PAYROLLS RELATED BENEFITS
• UNSETTLED CONTRACTS NO ADDITIONAL COST UNTIL
  SETTLEMENT LAST DATE OCTOBER 1

47
EXPENDITURES

• EXPENDITURES
• XX E XXX XXX XXX XXX
• FUND FUNCTION OBJECT PROJECT
• Instructional functions in 6 funds
• 26 OBJECT ACCOUNTS associated with each
  instructional function
• 100 - Salaries
• 200 Benefits
• 300 - Purchased services
• 400 Non Capital Objects

• 500 Capital Objects
• 600 Debt Retirement
• 700 Insurance and Judgments
• 800 Transfers
• 900 Other

48
Expenditure Accounts Functions

• 100 000 INSTRUCTION
• 200 000 SUPPORT SERVICES (Guidance, Library,
  Supervision, Business Administration,
  Maintenance, Central services
• 300 000 - COMMUNITY SERVICES
• 400 000 NON PROGRAM (Interfund transfers,
  adjustment and refunds, Revenue transit to
  others)
• INSTRUCTIONAL FUNCTIONS PERMITTED IN 6 FUNDS
• INSTRUCTION IS RESTRICTED TO INTERACTIONS
  BETWEEN PUPILS AND TEACHERS

49
REPORTING REQUIREMENTS

50
SCHOOL FINANCE REPORTING PORTAL
All School Financial Services reports are
accessed through the School Finance reporting
Portal. SAVE THIS PAGE AS A FAVORITE www.dpi.wi.
gov/sfs/index.html
51
Finance Reporting Portal
52
District Homepage
53
Status and Deadlines
54
Financial Data Home
55
Financial Reports

• Aid Certification PI-1505 AC - The purpose of
  this report is to provide the department with
  school district annual report data that will be
  used in the October 15th certification of aid.
• Due August 24
• Annual Report PI-1505 This application collects
  complete year end fiscal data for reporting,
  verification, and auditing purposes.
• Due October 1
• Budget Report PI-1504 This application collects
  budgeted fiscal data for estimating general state
  aids. Per WI Stats. s. 65.90Every district
  annually must formulate a budget and hold public
  hearings thereon.
• Due December 7
• Tax Levies PC-401 - This application collects
  school district tax levy information creates
  individual municipal tax certification pages, and
  reports information to both DPI and the
  Department of Revenue.
• Due October 26

56
Financial Reports

• Indirect Cost Rate Adjustment PI-1161 This
  report collects data in order to develop the
  districts indirect cost rate for recovery of any
  indirect costs related to federal grants and
  contracts.
• Interdistrict Integration Transfer Program Report
  PI-1541 This report collects data in order to
  identify how the district used aid paid to the
  district under State Statute 121.85(6).
• Intradistrict Integration Transfer Program Report
  PI-1542 - This report collects data in order to
  identify how the district used aid paid to the
  district under State Statute 121.85(6).

57
Financial Reports

• Sage Class Expansion Claim PI-7206 - This report
  collects data from districts eligible to receive
  Sage aid on debt service expenses.
• Special Education Claim Annual PI-1505 SE
  This report collects year end special education
  fiscal data for special education categorical aid
  eligibility.
• Special Education Claim Budget PI-1505 SE -
  This report collects budgeted special education
  fiscal data for estimating special education
  categorical aid eligibility.
• State Tuition Claim Form PI-1524 This report
  collects data needed to calculate state tuition
  payments to districts as per State Statute 121.79.

58
BUDGET FINANCIAL REPORT (PI-1504)

• The School Finance Services team has developed
  budget adoption worksheets to assist the district
• Budget Hearing and Adoption
• http//www.dpi.wi.gov/sfs/budhear.html
• Budget Development and Planning- Revenue Limit
  Executable Worksheet
• http//www.dpi.wi.gov/sfs/buddev.html

59
PI-1505 ACAid Certification Data Form

• Two options available for filing PI-1505 AC via
  internet
• Manually enter PI-1505 AC data
• Load strip file to annual, complete the annual
  before PI-1505AC due date
• School Finance reporting Portal SAFR
  http//dpi.wi.gov/sfs/index.html
• Only selected data from full financial report
  necessary to certify Equalized Aid on October 15
• Only data 43 lines Most districts will use
  maybe 15

60
PI-1506 ACAuditor aid Certification

• Auditor verifies the PI-1505 AC. Amounts
  reported by auditors override PI 1505AC amounts.
• Quick Audits created and
• posted to internet
• Due September 8th
• PI-1506 verification of PI1505 SE and no valid
  license testing. Due September 15th
• Mail paper form

61
September

• Preliminary Aid Estimate created and posted to
  internet
• PI 1506 AC site reopens for auditors to amend
  data through October 2nd

62
PI-1505(Full Financial Annual Report)

• Two options available for filing PI-1505 via
  internet
• Manually enter PI-1505 data
• Load strip file to annual
• School Finance reporting Portal SAFR
  http//dpi.wi.gov/sfs/index.html

63
AUDITED FINANCIAL STATEMENTS

• Filed by auditor
• School District must have Fixed asset appraisals
  completed by June 30th
• Audits are Due
• December 1st

64
SPECIAL EDUCATION Budget and Annual (PI-1505 SE)

• Fund 27
• Budget Special Education Claim (2006-2007)
• Due December 7, 2007
• Annual Special Education Claim (PI-1505 SE)
• Due September 3st 2007

65
Non-Financial Data Home
66
Non-Financial Reports

• Pupil Count Summer PI-1804/1805 This
  application collect pupil count data at the end
  of the summer preceding the regular school year.
  The district will receive membership credit in
  the aid and revenue limit calculations.
• Pupil Count September PI-1563 This
  application collects pupil count data as of the
  third Friday in September. The district will
  receive membership credit in the aid and revenue
  limit calculations.
• Pupil Count January PI-1563 - This application
  collects pupil count data as of the second Friday
  in January. The district will receive membership
  credit in the aid calculation.

67
Non-Financial Reports

• Youth Challenge Academy PI 1563-YCA This
  application collects pupil data on students
  attending the National Guards Challenge Academy
  at Fort McCoy. The district will receive
  membership credit in the aid and revenue limit
  calculations.
• Pupil Transportation PI-1547 This application
  collects pupil data for transportation
  categorical aid eligibility.
• School Calendar PI-1505 Cal This application
  collects data on the districts days of
  instruction and is used to determine compliance
  with Wisconsin Statute 121.006(2)(a).
• School Census PI-1505 Census - This report
  collects school census data as of June 30 for the
  purpose of paying out Common School Library Aid
  to Wisconsin School Districts.

68
PUPIL COUNT

• Primary purpose
• Used to calculate FTE for revenue limit and
  equalization aid
• Wisconsin public school districts are required to
  undertake a 3rd Friday in September and 2nd
  Friday in January pupil count and report them to
  the DPI.

69
PUPIL COUNT

• The School Finance Services team has developed a
  PI 1563 worksheet
• Complete the worksheet prior to entering the
  internet-based reporting program.
• Available at http//www.dpi.wi.gov/sfs/membrpt2
  .html

70

• PUPIL
• TRANSPORTATION

71
Pupil Transportation Aid

• WI Statute 121.58
• DPI pays pupil transportation aid based on
  student ridership for students who are actually
  transported by the school district. Due August
  1st
• Aid paid at per pupil rate based on distance and
  days enrolled
• School districts receive aid based on data
  submitted at school finance reporting portal
• https//www2.dpi.state.wi.us/safr/

72
Pupil Transportation (cont.)

• Online transportation report filed with DPI

73
Pupil Transportation (cont.)

• Supporting documents
• Listing which contains
• Pupils transported at least once
• Home to school distance per pupil
• Days enrolled per pupil

74
ACCOUNTING TRANSACTIONS
75
PROPERTY TAX LEVIES

• LEVIES INTO FUND 10, 38, 39, 41, 80
• THE TOTAL LEVY IS REVENUE
• SOURCE 211 CURRENT LEVY
• SOURCE 212 CHARGEBACK LEVY (FUND 10 ONLY)
• TAXES RECEIVABLE AT JUNE 30

76
PROPERTY TAX REFUNDS

• USUALLY PAYMENT TO MUNICIPALITY FOR UNCOLLECTED
  PERSONAL PROPERTY TAXES
• FUND 10 FUNCTION 492 000 OBJECT 972
• (10 E 492 000 972)
• COLLECTION OF REFUND
• FUND 10 SOURCE 972 (10 R 000 000 972)
• SOURCE 212 LEVY NET PAYMENTS
• OPTIONAL
• NOT NEGATIVE
• NET OF OBJECT 972 MINUS SOURCE 972

77
PROPERTY TAX REFUNDS (contd)

• ONLY LEVY FOR UNCOLLECTED TAXES PAID OR HAVE BEEN
  BILLED BY THE MUNICIPALITY AND YOU INTEND TO PAY
  THEM
• OVER LEVY RESULTS IN TAXING WITHOUT PROPER
  AUTHORIZATION

78
Long-Term Debt

• If used for acquiring capital assets, receipted
  into Capital Projects Fund expended out of
  there
• Capital items include buildings, equipment,
  books
• General Fund? highly unlikely but can be used
  if for operational purposesmust notify DPI

79
CAPITAL PROJECTS FUNDS

• 41 CAPITAL EXPANSION FUND
• ONLY CAPITAL PROJECTS FUND WITH TAX LEVY PART
  OF REVENUE LIMIT
• 48 TIF CAPITAL IMPROVEMENT LEVY
• KENOSHA SCHOOL DISTRICT ONLY
• 49 OTHER
• USUALLY LONG-TERM DEBT BORROWING
• OTHER (PROPERTY SALES, CAPTAL GRANTS)

80
DEBT SERVICE FUNDS

• 38 NON-REFERENDUM DEBT
• TAX LEVIES UNDER REVENUE LIMIT CAP
• 39 OTHER DEBT
• TAX LEVIES OUTSIDE REVENUE LIMIT CAP

81
TEMPORARY FUNDS

• CAPITAL PROJECTS WITH LONG-TERM DEBT
• DEBT SERVICE FUND FOR PAYMENTS ON LONG-TERM DEBT

82
DEBT TRANSACTIONS

• FOR EACH TYPE OF DEBT
• BEGINNING BALANCE PLUS
• NEW DEBT INCURRED MINUS
• PRINCIPAL PAYMENTS EQUALS
• ENDING BALANCE

83
DEBT TRANSACTIONS

• LONG TERM DEBT PROCEEDS GO INTO A FUND AS A
  SOURCE
• LONG TERM DEBT PAYMENTS OUT OF A FUND AS AN
  EXPENDITURE
• CASH (TEMPORARY BORROWING) GENERAL FUND BALANCE
  SHEET

84
CASH FLOW BORROWING

• GENERAL FUND TRANSACTION
• BALANCE SHEET TRANSACTION FOR PRINCIPAL AMOUNTS
• INTEREST EXPENSE ACCRUAL AT JUNE 30
• INTEREST REVENUE
• IN FUND PRODUCING INCOME
• INTEREST RECEIVABLE AT JUNE 30

85
CASH FLOW BORROWING (contd)

• Accounting transactions
• Dr. Cash 1,000,000
• Cr. Temporary Notes Payable 1,000,000
• (Acct. 10B 811 100)
• Dr. Interest Expense 40,000
• (10E 682 283 000)
• Cr. Interest Payable 40,000
• (10B 811 700)

86
CAPITAL LEASE

• BORROWING FROM A VENDOR TO ACQUIRE ITEM
• JOURNAL ENTRY TO RECORD FINANCING TRANSACTION
  (Dr. Capital Outlay and Cr. Source 878)
• PRINCIPAL AND INTEREST PAYMENT TRANSACTIONS AS
  PAYMENTS ARE MADE (Objects 678/688 Function
  281000)

87
BOND ANTICIPATION NOTES

• OFTEN TAKEN OUT PRIOR TO RECEIVING PROCEEDS OF
  PERMANENT DEBT ISSUANCE
• WHEN RECEIVED CREDIT LOANS SOURCE 873 CAPITAL
  PROJECTS FUND
• INTEREST PAYMENTS ON BANS DEBT SERVICE FUND
  TRANSFER IN OR LEVY

88
DEBT REFINANCING

• INCUR NEW DEBT AND USE PROCEEDS TO PAY OFF
  EXISTING DEBT
• PAY OFF MAY INCLUDE PAYMENT OF NEW DEBT
  PROCEEDS TO ESCROW AGENT
• TAKES PLACE IN DEBT SERVICE FUND
• CONTACT DPI FOR ASSISTANCE WITH RECORDING

89
TEACH PROGRAM

• TEACH FUND (23) USED
• FUND 93 IF COOPERATIVE FISCAL AGENT NOT COMMON
• ACCOUNTS FOR ALL FUNDS RECEIVED FOR TEACH BOARD
• BLOCK GRANT
• LOANS
• CAN HAVE A BALANCE OR DEFICIT

90
TEACH PROGRAM LOANS

• TRACK THE CASH
• PROCEEDS IN TO FUND 23
• REPAYMENT OF LOANS FROM FUNDING SOURCE DISTRICT
  WISHES TO USE FUND 10 OR 23
• DEBT SERVICE FUND ONLY LOAN TAKEN OUT AS GENERAL
  OBLIGATION DEBT RARE
• DISTRICT PAYMENT GETS CODED AS EXPENDITURE
• STATE MATCHES ANNUAL PRINCIPAL PAYMENT

91
UNSETTLED EMPLOYEE CONTRACTS

• IF UNSETTLED WHEN FILING REPORT NO ADDITIONAL
  COST RECORDED
• IF SETTLEMENT OCCURS AFTER FILING REPORT BUT
  BEFORE OCTOBER 1, AMEND REPORT TO SHOW INCREASED
  COST
• SETTLEMENT AFTER OCTOBER 1 COST OF YEAR
  SETTLEMENT OCCURS IN

92
PAYROLL ITEMS

• ACCRUAL AT JUNE 30 FOR EMPLOYEE SERVICES PROVIDED
• SALARIES
• RELATED BENEFITS
• INCLUDES SUMMER PAYROLLS
• NO ACCRUAL FOR POST-EMPLOYMENT BENEFITS
• SPECIFIC RULES FOR UNSETTLED CONTRACTS

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SELF FUND HEALTH BENEFITS

• DISTRICT SELF FUNDS HEALTH/DENTAL BENEFITS
• PRIVATE PLAN ADMINISTRATOR USUALLY INVOLVED
• PREMIUM EQUIVALANCY USED FOR BUDGETING/COSTING
• FINAL REPORTED EXPENDITURES MUST BE ACTUAL COST
  FOR FISCAL YEAR INCLUDING INBNR COSTS

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SELF-FUNDED HEALTH BENEFITS

• SERIES OF GENERAL FUND BALANCE SHEETS ACT AS
  INSURANCE COMPANY
• LIABILITY ACCOUNT VS RESERVED FUND BALANCE
• 5 ADJUSTMENT ACCOUNT
• SOURCE/OBJECT 965

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COMMODITY HANDLING CHARGES

• New in fiscal 04-05
• Handling charges for commodities will be
  subtracted from federal food service aid payments
• District must report the gross federal revenue
  (Source 700s)
• Handling charges are recorded as Object 387
  Function 257 000
• Handling charges will be identified on Aids
  Register as a negative amount

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Sample Transmittal
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Internet Reporting

• Referenda Reporting
• Long-Term Debt Reporting

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Reporting Upcoming Referenda and Results

• Districts notify DPI of upcoming referendum
  within 10 days of resolution adoption
• Reporting via DPI portal
• https//www2.dpi.state.wi.us/safr/
• Forms PI 1572-A and PI 1572-B are no longer in
  paper form

99
Reporting Upcoming Referenda and Results (contd)
100
Reporting Upcoming Referenda and Results (contd)
Click to add details for upcoming referendum
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Reporting Upcoming Referenda and Results (contd)

• 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

102
Reporting Upcoming Referenda and Results (contd)

• Debt referendum Dollar amount of proposed
  borrowing
• Revenue limit referendum Dollar amount of
  increases in revenue limit authority and years
  involved
• --Recurring exemption no end year
• --Non recurring exemption must list start and
  stop years and amounts for all years

103
Reporting Upcoming Referenda and Results (contd)
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Reporting Upcoming Referenda and Results (contd)
105
Referenda filing requirements

• Copy of adopted resolution authorizing election
• Copy of board of canvassers statement which
  reports official vote tally
• Due at DPI within 10 days of election
• Can be faxed to Gene Fornecker, 608/266-2840 or
  mailed

106
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

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Reporting District Long-Term Debt

• Districts are now required to notify DPI via the
  reporting portal any changes in their long-term
  debt repayment schedules
• Prepayments of principal, refinancings, new loans
  will require adjustments by district
• Updating of online debt schedules can be done at
  any time during the year

109
Reporting District Long-Term Debt

• Debt amortization schedules must be entered as
  part of Annual Report submission process if not
  updated previously
• Reporting via DPI portal
• https//www2.dpi.state.wi.us/safr/

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Reporting District Long-Term Debt

• The districts Annual Report has built in edits
  to check the following
• 08B debt balances at beginning and end of year
• Function 281000, 283000, 285000, 289000 principal
  and interest amounts agree to debt schedules
• New debt proceeds will be verified against
  referenda database if Fund 39 debt

116
Questions?
117
SPECIAL EDUCATION FUND 27
118
SPECIAL EDUCATION

• SOME BASIC PRINCIPLES
• COSTS OF PROVIDING SPECIAL EDUCATION AND RELATED
  SERVICES
• COSTS FUNDED BY A COMBINATION OF STATE, LOCAL AND
  FEDERAL DOLLARS
• ALL EXPENDITURES AND RELATED REVENUE ACCOUNTED
  FOR IN FUND 27
• CONSOLIDATES STATE, FEDERAL AND LOCAL SPECIAL
  EDUCATION ACCOUNTING IN ONE FUND

119
SPECIAL EDUCATION ACCOUNTING

• SPECIAL EDUCATION FUND (FUND 27) ALWAYS CLOSED
  OUT WITH A TRANSFER FROM THE DISTRICTS GENERAL
  FUND
• REPRESENTS BOTTOM LINE COST OF SPECIAL
  EDUCATION AND RELATED SERVICES TO DISTRICT

120
SPECIAL EDUCATION PROGRAMS

• PROGRAM OPERATED BY THE DISTRICT (DISTRICT
  EMPLOYS PERSONNEL)
• PROGRAM OPERATED WITH A CONSORTIUM OF SCHOOL
• PROGRAM OPERATED BY CESA
• PROGRAM OPERATED BY CCDEB

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SPECIAL EDUCATION CLAIM

• STATE SPECIAL EDUCATION CATEGORICAL AID BASED ON
• REPORT FILED WITH DPI VIA DATA FILE (E-MAIL)
• BUDGET REPORT - NOVEMBER
• ANNUAL REPORT - SEPTEMBER

122
SPECIAL EDUCATION ACCOUNT CODING (Cont.)

• PROJECT CODES USED TO IDENTIFY HOW EXPENDITURES
  ARE FUNDED
• STATE CATEGORICAL AID
• GRANT PROGRAM AIDED
• CHARGED TO CESA FOR PACKAGE PROGRAM EXPENSES
• NONE OF THE ABOVE

123
SPECIAL EDUCATION ACCOUNT CODING

• http//www.dpi.wi.gov/sfs/speced.html

124
MEDICAID SBS SERVICES

• PROVIDED TO CHILDREN WITH DISABILITIES (SPECIAL
  EDUCATION)
• COST IN SPECIAL EDUCATION FUND (27)
• REVENUE IN GENERAL FUND (10)
• CANNOT CHARGE MEDICAID COSTS AGAINST FEDERAL
  GRANT FUNDS
• NOT A DEDUCTIBLE FOR STATE CATEGORICAL SPECIAL ED
  

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PSYCHOLOGISTS/SOCIAL WORKERS/NURSES/COUNSELORS

• MUST BE EMPLOYED NOT CONTRACTED
• ONLY PORTION OF TIME RESPONSIBLE FOR SPECIAL
  EDUCATION
• METHODS USED FOR ALLOCATION
• TYPES OF ACTIVITIES ELIGIBLE FOR SPECIAL
  EDUCATION AID
• http//www.dpi.wi.gov/sfs/ltrjan12_06.html

126
COOPERATIVE AGREEMENT 66.0301

• Please attend Thursday session regarding Special
  Education program

127
Thanks Good Luck
128
QUESTIONS?

• School Finance Auditors
• Kathy Guralski - [phone]
• kathryn.guralski_at_dpi.state.wi.us
• Natalie Rew - [phone]
• natalie.rew_at_dpi.state.wi.us

Gene Fornecker - [phone] eugene.fornecker_at_d
pi.state.wi.us