Multi-dimensional Matrix contains the level of account numbers we collect in the budget and annual reports. General ledger will be more detailed Location – generally denotes buildings or sites such as elementary, middle, high building or district-wide
For DPI and general ledger 210 Taxes includes 211-Property Tax, 212-Property tax chargebacks, 213-mobile home tax and 219-Other taxes
120000 function includes 121000-Art, 122000 English language, 123000-foreign language 100 object includes 110-permanent full time, 120-permanent part time, 130-temporary full time, 140-temporary part time
First item in the account format is fund Generally accepted accounting principles define a fund as the slide Self-balancing Segregated for a specific activity
Day to day operations, generally not real unusual or required to be reported in another fund Also referred to as an instructional fund -used for instruction activities and pupil support activities or instructional staff support
Fund 21 - Gifts Include here both expendable and non-expendable (explain that term) Fund 29 – Headstart, Federal Indian Education funded programs
Referendum vs non-referendum Debt proceeds do not get reported here Revenue to make the repayment will be a tax levy or in fund 38 may be a transfer from fund 10 (WRS payment common example) Separate bank account recommended
CAPITAL EXPANSION FUND – PROJECTS FINANCED WITH TAX LEVY STATUTE 120.10(10m) USE OF THIS FUND RESTRICTED FOR CAPITAL EXPENDITURES RELATED TO BUILDINGS AND SITES. (ACQUIRING AND REMODELING BUILDINGS AND SITES, AND MAINTENANCE OR REPAIR EXPENDITURES THAT EXTEND OR ENHANCE THE SERVICE LIFE OF BUILDINGS AND BUILDING COMPONENTS, SITES AND SITE COMPONENTS) EQUIPMENT CANNOT BE ACQUIRED THROUGH THE USE OF THIS FUND APPROVED AT ANNUAL MEETING (Resolution every year) FUND 48 - PROJECTS FINANCED WITH A TAX LEVY PER STATUTE 120.135. (TIF) CURRENTLY NO DISTRICTS REPORT HERE FUND 49 - CAPITAL PROJECT ACTIVITIES RECORD PROCEEDS OF BORROWING AND RELATED EXPENDITURES Debt proceeds can only be used for purposes of borrowing Separate Bank Account recommended
If the program does not support itself, a transfer from fund 10 or 80 is to be made Separation between the revenue and cost of the elderly is to be maintained so that fund 10 is not supporting elderly which is really a community program
May include booster club and other parent organizations An organization should not have a negative balance at year end. Policies and procedures by district office are very important Most susceptible to theft – many people handling money (fund-raisers) This is the one people lose their jobs over
DISTRICT HOLDS THE INVESTMENT, IS RESPONSIBLE FOR ACCOUNTING FOR IT BUT THE SPENDING OF THE FUNDS IS NOT DETERMINED BY THE SCHOOL DISTRICT Fund 72 SCHOLARSHIPS CASH AND INVESTMENT ACCOUNTS ARE REQUIRED AS SPECIFIED BY DONORS Fund 73 MUST HAVE A LEGALLY ESTABLISHED TRUST SET UP TO FUND POST EMPLOYMENT BENEFITS TO BE ELIGIBLE FOR CATEGORICAL AID, CONTRIBUTION MUST EQUAL ANNUAL REQUIRED CONTRIBUTION (ARC) DETERMINED BY AN ACTUARY.
EXAMPLES - ADULT EDUCATION, COMMUNITY RECREATION PROGRAMS, NON-SPECIAL EDUCATION PRESCHOOL, DAY CARE SERVICES DISTRICT MAY LEVY FOR THIS FUND MAY NOT MAKE A TRANSFER FROM FUND 10
MULTIDISTRICT PROJECTS FOR WHICH IT IS NECESSARY TO KEEP A SEPARATE RECORD OF ACTIVITY SO THAT PARTICIPANT DISTRICTS’ SHARE CAN BE DETERMINED Still instructional funds REVENUES MUST EQUAL EXPENDITURES WRITTEN AGREEMENT Fund 91 REVENUE – CESA PAYS HOST DISTRICT FOR FULL COST OF PROGRAM ONLY REVENUE MUST EQUAL EXPENDITURES CESA MAKES THE PACKAGED SERVICE AVAILABLE TO SCHOOL DISTRICT THE PARTICIPATING DISTRICTS, INDLUDING THE HOST DISTRICT, WILL PAY CESA FOR THEIR SHARE OF THE PROGRAM HOST DISTRICT RECORDS CESA PAYMENTS WHICH MUST COVER THE EXPENDITURES
200 received from a local source such as the tax levy 300 – received tuition from another school district for a resident student attending there 500- received reimbursement from a CESA or CCDEB for a service provided them or CESA received aid and is transiting it to the district 600-State aid received 700-federal aid received 800-other financing sources – proceeds of new debt issue 900-other (adjustments, miscellaneous)
Purchased service – contract with OT or PT to provide service to the district 400 – general supplies 500-equipment with a life over 1 year 600-principal and interest payments made on debt
Overview – general ledger loaded into SAFR annual report Manually enter addendas, debt service amort schedules, 08 table In addition, fund 27 goes to special ed claim (will be on line in a few years and will pull from SAFR report)
Mark this page Focus on accounting issues (questions and issues)
On or before November 1, every public school board must approve the levy amounts necessary to operate and maintain district schools (s. 120.12(3) Wis. Stats.) Levy set in November, received in January and August of following year. Record full tax levy source 211 At June 30, the district will still have uncollected property taxes and thus a receivable on the books. Common question – May be in all funds but must be proportionate to the % of the total levy that the fund is Example – Levy in Fund 10 is 400,000, levy in Fund 38 is 100,000, receivable is 100,000 (fund 38 may only have a receivable of 20,000 or 20% of the receivable)
Will have a fund balance in debt service on June 30 th to cover the October payment
Municipality charges back to the district delinquent personal property taxes The school district pays the municipality for those charges, object 972 Occasionally, a municipality collects some amounts that were previously charged back (district paid back to the municipality). When this happens, the municipality returns the school portion to the school district. Revenue source 972 May or may not have a 212 – chargeback To finance those charges, the district levies tax for them NET THE 972’s but YOU SHOULD NEVER HAVE A NEGATIVE LEVY!
Can levy for chargebacks up to the time you set the levy. May collect those you levied for but they would be reported as 972 source and net in the next year’s levy BE SURE to not levy for delinquent taxes unless they have been paid to the municipality or have been billed by the municipality.
Source/Object 971 E-Rate Refunds FCC assesses the telecommunication carriers for the funds which are then dispursed back to the carriers through an administrator. This allows a discount to the schools. The federal government oversees the program but the funds come from the carriers. Insurance Refund Dividend or refund of prior year insurance premium CESA Refund Cesa overcharges the district and in the next year returns the overpayment CAUTION – district may have used grant dollars to pay CESA Dividend’s on Worker’s Compensation Other Examples Flex plan at year end, employee forfeits remaining balance Source/Object 972 Property Tax Refund Equalization Aid Refund Adjustment to district’s aid after year end Taxpayer Levy Refund Paid from individual taxpayer versus municipality (not sure when this happens) Special DPI Approved Amount Special situation and DPI has told you to record it there (rare, i.e. TIF district)
Common error in the annual report Why does DPI care about what are generally small dollar amounts? When recorded in 212 or 972 it does not impact the deductible receipts It does not reduce your net cost for equalization purposes
ENTITLEMENTS Entitlement grants are formula grants based on factors such as: Population, enrollment, per capita income, specific need Entitlement grants are typically your larger receipts such as Special Ed Aid and Equalization Aid. Revenue is recorded when appropriated. District will generally receive funds at specified dates during the year. Normally will not have a receivable at year end unless there is a delayed payments. General aid normally has a receivable at year end (deferred general aid payment) REIMBURSABLE GRANTS Reimbursable grants are based on cost and will require filing Cost-Reimbursement claim PI-1086. Examples – IDEA, Title I, AODA Generally these grant revenues are recorded in either Source 630 for State Programs or 730 for Federal programs. 630 and 730 are from DPI
This entry causes problems at year end. This information is mailed to you and available on the web.
Most borrowing is accounted for in the capital project and debt service funds The only borrowing recorded in the district’s general fund on the balance sheet Short term borrowing – less than a year Capital lease Operating debt (generally financial difficulty) Only 2 districts currently have operational debt Interest expense is also recorded in the General Fund At June 30, if there is a balance outstanding it is shown as a liability Accrued interest also must be recorded at June 30. The amount accrued is a calculated amount from the date the loan was taken out to June 30. You can calculate this amount and have your auditor review it or they will calculate it for you. Interest will be earned on the amount borrowed as it is in your cash or investment account. Correspondingly, there will also be accrued interest receivable at year end.
Short term borrowing needs to be paid back by November 1 following the school year. Be careful as to when you borrow: Example – District has ST borrowing coming due in September but do not have cash to pay. Want to short term borrow again but have not yet had their annual meeting. Cannot secure the loan because they have not voted a tax. Per Stat. 67.12 (8)(2) “In June prior to voting an annual tax for the operation and maintenance of the schools for the subsequent school year, and in July and August prior to voting an annual tax for the operation and maintenance of the schools for the current school year, borrow money as needed to meet the immediate expenses of operating and maintaining the public instruction in the school district from July 1 to the last working day in October. Therefore, the borrowing in September is not allowable. Need to plan for the annual meeting to take place prior to when the ST note is due so that they can borrow again. (borrow in November or December) Accrued interest payable is calculated as the amount of the loan times the number of days outstanding til June 30 times the interest rate.
Typically no funds exchange hands between the district and vendor so these types of transactions typically go ‘unrecorded’ until the audit. Record a revenue and expenditure for full value of fixed asset Generally in fund 10
Districts usually don’t report issuances of long-term debt…only operational debt is issued and reported in Fund 10.. Highly unlikely for a district to have operational debt.
Debt issued in “Anticipation” of long term debt being issued in the near future. Frequently referred to as BANs. Considered LT debt If interest due prior to levy, transfer from 10
Usually very confusing to record entries.
Accruals at year end must be for only employee services provided before year end.
October 1 st is the key date. If contracts are settled before October 1 st you must amend the PI 1506 AC. Auditor must go in and change expenditures to reflect the settlement.
Before we talked about a coop in fund 27, let’s talk about fund 27 in general
Remember that revenue from medicaid goes into Fund 10 only but special education expenditures are always in fund 27
The many different programs create a lot of different situations and a lot of different coding In addition the different funding of costs create various coding Creates problems with coding Will become even more important with SAFR reporting Operated by District: You employ the staff You claim the costs for special education Operated as a consortium: Several school join together Each one alone cannot afford the program or do not have enough students One District administers the program Incurs cost (must hire staff) Bill other Districts for services Receive aid Transit aid to other Districts Operated by CESA: CESA administers the program CESA may or may not hire the staff Host District Operated by CCDEB: CCDEB administers the program Similar to CESA
What is a COOP or multidistrict project? One district alone does not have enough pupils to solely operate a program. The program is operated by bringing together several districts who share the cost They enter into a coop agreement or contract with other districts (not same as with a CESA) One district acts as fiscal agent Maintains records of revenues & expenditures Provides documentation to Auditor File any necessary claim forms
Project other than special education – Fund 99 Record all expenditures Record aid received Bill the participating districts for their portion of net cost Reclassify fiscal agent portion to fund 10 At end of project Fund 99: Revenues must equal expenditures No fund balance A salary only individual could be in fund 10 ALLOWS FOR EASIER TRACKING DOESN’T INFLATE REVENUES AND EXPENDITURE IN FUND 10
Multidistrict project is a Special Education Project All activity in Fund 27 Bills participating districts for total cost of program
Do not reduce for anticipated special education aid (IMPORTANT) Aid based on prior year costs Fiscal agent receives aid Distributes special education aid when received Fiscal agent portion remains in fund 27
Another confusing topic for a lot of people. By not correctly adjusting year end payables the district could substantially over(under)state its shared cost.
Premium equivalency is determined by plan administrator. Premium equivalency is charged to expenditure accounts At year end, review of actual claims incurred determine whether or not the premium equivalency was correct. Adjustment must be made.. This really is difficult to budget as future claims are not known.
WASBO New School Administrators & Business Support Staff Workshop August, 2007 Wisconsin Department of Public Instruction ACCOUNTING TRANSACTIONS
Most of the commercial software used in districts will display account codes in this order. In DPI reporting you will see the function number preceding the object or source. DPI reporting does not require location detail.
A fiscal and accounting entity with a self-balancing set of accounts…which are segregated for the purpose of carrying on specific activities in accordance with special regulations, restrictions, or limitations
Instructional ( 100000 ) limited to activities between students and teaching staff
Support Services ( 200000 ) administrative, technical & logistical support to both instructional and non-instructional programs
Community Services ( 300000 )
Non-Program Trans . ( 400000 ) purchased instructional services, , interfund transfers, open enrollment tuition are included here
District-Wide ( 500000 ) used only with revenue sources
General Ledger Fund 10 Fund 20 Fund 30 Fund 40 Fund 50 Other Funds Addendas Debt Service Amort. Schedules 08 Debt table . Budget/ Annual Report to DPI Special Ed. Claim Fund 27 ORGANIZATION OVERVIEW
When a grant reimbursement claim is submitted BEFORE the end of the fiscal year, but the actual cash won’t be received until AFTER the start of the new fiscal year, a grant receivable needs to be booked in the ledger.
In accrual accounting, revenue is recognized when it is earned. By submitting the reimbursement claims in June, the district “earns” the money in the 06-07 school year, so the claims need to be booked as revenue in 06-07; however, since the actual cash will not come until the 07-08 school year, a receivable is used to account for the expected cash.
Title I-A 06-07 reimbursement claim for $26,493 is completed and sent to DPI on June 29.
07-08 Entry When the Cash Comes: Debit 10B-711000-001 Cash $26,493 (increase) Credit 10B-715000-001 Due from Oth Gov’nts $26,493 (decrease) (So, 07-08 revenue is not effected at all by this transaction, which is what we want because this amount was already booked as revenue in 06-07!) 06-07 EOY Adjusting Entry (both increases): Debit 10B-715000-002 Due from Oth Gov’nts $26,493 Credit 10R-000000-751 IASA Title 1 $26,493
✔ Submit 05-06 grant claims. ✔ Book 05-06 revenue in appropriate Source and end-of-year 05-06 receivable in 715000-002. ✔ Submit 06-07 grant claims. ✔ Book 06-07 revenue in appropriate Source and end-of-year 06-07 receivable in 715000-002. Receive 06-07 cash early in 07-08 fiscal year (shows up on 07-08 aids register) Revenue should equal the Aids Register amount minus the beginning-of-the-year receivables (05-06 revenue) plus the end-of-year receivables (06-07 revenue). Aids register is available at: http:// www.dpi.state.wi.us/sfs/online_ar.html 05-06 06-07 07-08 Receive 05-06 cash early in 06-07 fiscal year (shows up on 06-07 aids register)
Compensated absences are generally in the form of vacation, sick leave or earned “comp” time.
No expenditure is recognized on the books of the District when the absence is earned and accumulated. Rather, compensated absences are accounted for as expenditures in the fiscal period in which they are paid.
It is accounted for in the same manner as the regular wage paid for the pay period.
If compensated absences are paid by lump-sum settlement to a former employee, they should be accounted for under function 290000, object 290 “Other Employee Benefits”.
Resources held in trust for formally established defined benefit pension plans, defined contribution plans, or employee benefit plans. Such plans must be legally established in accordance with state statutes, federal laws and IRS requirements. Specific requirements for use of this fund have been established by the DPI at: http:// www.dpi.wi.gov/sfs/emp_benefit_trust_fund.html