Fiscal Year-End Closing 2005/2006

1
Fiscal Year-End Closing
2005/2006 Follow the Footsteps.

• to a Great Closing
• Sonoma County
• Office of Education

2
Year-End Closing Timeline
May/June

• 5/24 Year-End Closing Workshop
• 6/09 Close FY05-
  Payables/Receivables
• 6/22 Last APY Run
• 6/22 Final Cash Transfers
• 6/23 Final Cash Deposits
• 6/28 Open POs Rolled to PCLs
• Page 3

3
Year-End Closing Timeline June/July/August

• 6/30 Board Approved Blanket Transfer
  Resolution
• 7/14 Use Tax Report
• 7/31 Final Journal Entries (JE CJV) Final
  PCL AR Setups
• 7/31 Prior Year Screens Close at 430 pm
• Page 3

4
SCOES TIMELINE

• Budgets
• Start Up Forms June 16
• Budget Submission June 30
• Cash Roll July 3
• Adopted Budget (budget transfers) July 3 / AUG
  15
• Unaudited Actuals
• Closing Checklist July 31
• Final Asset/Liability Roll - August
• Page 4

5
FCS Batch Clean Up

• Review FCS Batch Control Report
• Identify Unposted Batches by Type of Transaction
• Report Batch Contents Using Report Option
• Delete Unposted Transactions
• Void Empty, Unposted 2005/2006 Batches
• Page 5

6
Prior Year Clean Up

• Must Be Performed Before Running Current Year End
  Accruals
• Prior Year Account Balances Must Be Zero by June
  9, 2006
• Accounts Receivable (prior year) 9210
• Accounts Payable (prior year) 9510
• Deferred Revenue 9650
• Open Receivable and Payable Reports Must be Zero
  by June 9, 2006
• Page 7

7
Accounts ReceivableClean Up

• Run Open Receivables Report
• If any Open Receivables Are Still Valid
• Liquidate (Z-out) Using AR Receipt
• Reestablish Using AR Setup
• Run GLD120 Report for Object 9210
• Clear 9210 to Zero
• Clear Outstanding FCS Batches
• Page 8

8
Accounts Payable Cleanup

• Clear Outstanding APY Batches
• Run Open Payables Report
• If Any Open Payables Are Still Valid
• Liquidate (Z-out) Using PCL Payment
• Re-establish Using Payables Setup
• Run GLD120 Report for Object 9510
• Clear 9510 to Zero
• Page 10

9
APY Batch Clean-Up

• Review APY Batch Control Report
• Identify Unpaid Batches by June 21
• Report Batch Contents Using District Accounts
  Payable Prelist Report
• Delete Unprocessed Payments
• Void Empty, Unpaid 2005/2006 Batches
• All Batches PAID or VOID by June 22
• Page 13

10
GASB 34 PREP

• Preliminarily Run HP3000 data through
  SACSA2006All GASB 34 Segments
• Print Fund Consolidation SEE ALL YOUR DISTRICTS
  FUNDS!!!!
• Print CE001- Capital Assets by Function
• Print CE002- Capital Assets by Object
• Analyze Above Reports For Account Code Errors
• Page 15

11
GASB 34 Prep

• Run HP3000 BDX by function and review report
  
• Why?

12
GASB 34 Prep

• GASB 34 presents by Function!!!!!!!!!!
• Please.
• correct all errors noted in the previous
  steps prior to submitting your unaudited actuals
  to your accountant

13
Special Ed MOE Prep

• Determine Change in Special Ed MOE Prior Year
  to Current Year
• Run Special Ed MOE Report in SACS2006ALL,
  Unaudited Actuals
• Make Corrections, If Necessary
• Be Prepared To Explain Differences If
  Expenditures Are Greater Than Prior Year
• Page 18

14
Community Day School

• Determine Allowable Costs are Coded to Resource
  2430, Goal 3550
• Run Community Day School Report in SACS2006ALL,
  Unaudited Actuals
• Make Corrections, if Necessary
• Page 20

15
Final APY for 2005/2006

• Thursday,
• June 22, 2006
• DO NOT OPEN BATCHES UNTIL JULY 3
• Run Final Vendor History Report
• Page 21

16
Purchase Order To PCL Roll

• Review Open POs
• Close If Not To Be Received BY JUNE 30
• Run Encumbrances To Payables Report
• On 6/28, ALL OPEN POs ROLL to PCLs
• PCL Screens Will Be Closed 700 AM
• Add/ Change/Delete PCLs Until JULY 31 Page 22

17
Use Tax Liability

• Use Tax Rates 7.75 Sonoma County
• 8.0 City of Sebastopol,
  City of Santa Rosa
• After 6/23, Run Use Tax Report FOR ALL FUNDS
• Add Sales Tax from Sales of Equipment
• Balance to GLD120 (by resource)
  FOR ALL FUNDS
• Pages 23 - 29

18
Use Tax Liability

• Districts Being Reported By SCOE
• Move ALL Use Tax to Fund 01
• Resource 0000 With A Cash Transfer
• Transfer By June 22
• All Use Tax Reports Due To SCOE
• By July 14, 2006

19
Holding/Clearing Accounts

• Clear to Zero
• 9538 PL Insurance Clearing
• 953x Employee Payroll Adjustments
• 9515 Stale Dated Warrants
• 9569 Payroll Mapping Errors
• Adjust to Actual
• 957x Health Welfare Benefits
• 9555 (SUI), 9557 (SDI)
• 9580 Use Tax
• Districts adjust all clearing to actual liability
  through June Reg. payroll. (Workers Comp to Fund
  01, Resource 0000, SCOE will clear final June
  Supp.)
• Page 30

20

• All Cash Transfers MUST be Processed by
  Thursday,
• June 22, 2006
• Page 32

21
2005/2006 Accounts Receivable

• Object 9229 should begin with a zero balance
• ARs Setup by Districts
• Voc Ed Federal Grants (Res.3500-3699)
• Mandate Cost Reimbursement only if received
• NO ARs for Federal PL 81-874 Funds
• Amounts owed to district for Rentals/Services
• Cafeteria Funds Use Due To/ From (9610/9310)
  Cafeteria Accounts Use AR (Fund 01) EP (Fund
  93)
• Lottery 3rd/4th Qtr Data From Accountants
• Watch for Invalid Resources
• Page 33

22
2005/2006 Accounts Receivable

• SCOE Sets Up/Provides Spreadsheet
• Title I
• PL 101-476
• Lottery- 3rd /4th, If Necessary
• Use AR Setup Program ONLY
• Do NOT Use JEs, Cash JVs or Transfers
• Add/Change/Delete AR Setups Until 7/31
• Submit Signed FAR311 When Done
• Page 34

23
Revenue Limit Adjustments

• Adjustments For
• Meals For Needy
• PERS Reduction
• Over collection of Property Taxes
• Charter in Lieu of Property Taxes(7280)
• Reduction to State Aid(8011)/ Charters(8015)
• Increase to Due to Government(9590)
• Pages 36/37

24
Deferrals of June Apportionments

• SCOE will set up and reverse all June
  apportionments deferrals
• Special Ed AB 602 Revenues
• GATE, Adult Ed, Charter Schools General Purpose
  Entitlement
• Prior Year Adjustments (8019)
• Other Special Ed Fees For Service and reversal in
  July (object 5809)
• Categoricals
• Transportation Resource 7230
• School Safety Resource 6405
• Page 37

25
Multi-District Service Agreements

• SACS reporting monitors interagency revenues for
  service agreements among school districts
• Common types are
• Special Education
• Transportation
• Food Services
• The district operating the program the Local
  Operation Agency needs to follow the Contract
  for Services accounting guidelines
• Page 38

26
Multi-District Service Agreements

• Local Operating Agency Accounting
• Use a locally defined 9XXX resource
• Expenditures are coded with a goal 7110,
  nonagency
• SACS looks at any 8677 revenue and requires
  nonagency (goal 7110) expenditures
• SCOE reviews all contracts for services
  relationships
• Any District that receives revenues from other
  districts will be required to adopt the Local
  Operation Agency accounting method

27
2005/2006 Accounts Payable

• Goods and/ or Services MUST BE RECEIVED BY JUNE
  30, 2006
• Request Progress Billings Project
• DO NOT USE TO ACCRUE BETWEEN FUNDS (except fund
  93)
• Use Due To (9610),Due From (9310)
• Watch for Invalid Resources
• Open Purchase Orders Roll to PCLs 6/28 -
  
• Cancel Any POs Not To Be Accrued
• Page 41

28
Year-End Payroll Details

• Payroll Fiscal Year Checklist Auth.
• New Payroll Liability Cycle, Summer School
• Deductions
• DNP
• Last Misc. Payroll Warrants June 20
• Payroll Accounts Receivable (9213)
• Raises and EFT Requests
• STRS and PERS Notes
• Page 45

29
Cash Balance as ofJune 30

• EACH FUND MUST Have A Positive Cash Balance
• Estimate The Following Outgo
• ALL MAY JUNE PAYROLLS
• ALL APY Payments
• Loans to Subsidiary Funds
• Estimate The Following Income
• Revenue Limit
• Special Purpose
• Other Local Revenue
• Page 48

30

• IF CASH SHORTAGE IS ANTICIPATED
• CALL
• BARBARA TATMAN
• NOW!!!!!

31
Trans Tax /Revenue Notes

• Must Show Fee For Borrowing
• Must Follow Payment Schedule
• Must Be Paid By May 1, 2006
• Page 50

32
Cash Roll

• Clear All Invalid Resources
• Fund Balance and Cash Balance Must be Zero
• Make Necessary Corrections
• Must Be Done By June 22, or
• Cash Roll And APY Will Not Happen
• Page 51

33
PL 101 - 476

• PL 101-476 (Resource 3310)
• Expend all Funds by June 30th
• See Table on page 53 of Closing Manual
• USE IT OR LOSE IT
• Page 52

34
PERS Reduction

• PERS Reduction Rates and Payroll
• Charge All Allowable Classified Salaries to PL
  101-476
• No PERS Reduction for Charter Schools
• May Adjust PERS Reduction P2 Estimates to Actual
  During Closing of 2005/2006 Books
• Page 54

35
Lottery

• Expend for Appropriate Instructional Expenses
• Resource 1100
• Rate 125 per ADA
• Resource 6300
• Rate 26 per ADA
• Transfers Out of 1100 Resource Require Additional
  SACS Reporting
• Your Auditor Will Audit Expenditures
• Pages 55 - 57

36
Interest Calculation

• Post Interest To Required Funds and Resources
• Restricted Resources IMFRP
• Cash in County Treasury Report
• Average Quarter Balance x Rate/4Quarters
  Interest
• Treasury Rates (See Page 59 of Manual)
• Page 58

37
Restricted Maintenance Accounts

• Transfer to Resource 8150
• Calculated Amount must be 3 Total Adopted Budget
• Transfer to Deferred Maintenance From Resource
  8150
• Page 61

38
Fund Balance or Deferred Revenue

• 1st Record ALL Estimated Payables (PCLs),
  Receivables (ERs) and allowable Indirect Costs
• Run GLD410 by Resource
• Determine FB or D Using CA School Accounting
  Manual or the SACS Query Website
• Pages 62 - 63

39
Fund Balance or Deferred Revenue

• Deferred Revenue Unspent money booked as a
  liability, revenue reduced and account 9650 is
  credited
• Fund Balance Unspent money can be carried
  forward into the next year
• Call you SCOE Accountant for Assistance

40
Restricted Transfers Between State Programs

• Two Types of transfers now available
• Mega-item Transfers (available since the 1990s)
• AB 602 Categorical Block Grant Transfers (new for
  2005-06)
• Coding by object distinguishes the two types
• Mega-item 8998
• AB 825 8995, except for Supplemental Grants,
  which use 8990
• Pages 65 - 72

41
Restricted Transfers Between State Programs

• Transfers allowable
• Mega-item allows 10 out and 15 in
• AB 825 allows 15 out and 20 in for four of the
  block grants
• School Safety Consolidated Competitive Grant
  (resource 7391)
• Professional Development Block Grant (resource
  7393)
• Targeted Instructional Improvement Block Grant
  (resource 7394) BUT THERE IS NO PERSENTAGE
  LIMIT FOR SUPPLEMENTAL GRANTS
• School and Library Improvement Block Grant
  (resource 7395)

42
Restricted Transfers Between State Programs

• AB 825 allows transfers in up to 20 of the state
  funding for two grants
• Pupil Retention Block Grant (resource 7390)
• Teacher Credentialing Block Grant (resource 7392)
• AB 602 transfers have a public hearing
  requirement (not required for the Mega-item)

43
Update Budgets

• THIS MEANS ALL FUNDS
• Projected Ending Balances for the current fiscal
  year reflected in your 2005-06 SACS Budget
  package are only as good as your current updated
  budget
• Last day for Board Approved Budget Transfers is
  June 30
• Blanket Budget Transfer may NOT be used to Update
  Revenue- revenue updates are a DISTRICT
  responsibility
• Page 73

44
Indirect Costs and Function Coding

• Amount Determined by Actual Expenditures, Not
  Entitlement
• 7310-7349 (Inter-program) Must Net to Zero By
  Function
• 7350-7399 (Inter-fund) Must Net to Zero by Object
  Function
• Check Indirect Cost Rate Per Resource via the
  SACS Query Website
• Food Services 5.33 maximum
• Adult Education 5.38 maximum
• Review Indirect Cost Rate in SACS2006ALL
• Check 7200 Function Coding
• Page 75-78

45
Reviewing Resources

• Restricted Resources Must Have a Positive or Zero
  Ending Fund Balance
• Use GLD 410 by Resource to Review
• Clear Negative Balances in All Funds
• Do not Use Resource 0000 in Funds 11, 14, 30,
  35 Page 79

46
County- Wide Year-End Entries

• SCOE Will Enter or Provide Spreadsheet for
  District Entry
• Special Day Class ADA Transfer
• PERS Adjustment Against General Fund
• Lottery A/Rs
• PL 101-476 (3310) A/R
• PL 81-874 (3010) A/R
• Revenue Limit (see Adjustment and Deferral
  Section)
• Charter Due To/From For In Lieu Property
  Tax Page 81

47
Blanket Budget Transfer Resolution

• Resolution MUST BE Board Approved BY June 30
• SCOE Will Prepare Transfer With District Help
• Direct Service Districts
• Use Resolution on page 83 of Closing Manual
• SCOE will prepare Transfer
• Large Districts
• Use Resolution on Page 87
• Page 83

48

• Calendars
• June, July, August
• Appendix A

49
Join The SCOE Detectives For a Mystery
Free Closing
Crime Scene Investigator Rodigez
Crime Scene Investigator Rodriguez
Adrian Monck
Agent 000
Rosalie Landsbury
Laurel Auditor At Large
Sherlock Daugherty
Laurel Auditor At Large
Bambi Magnum P. I .
Pinky Tatman
Carmen Blanca Sandiego