Accounting Transactions
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Accounting Transactions

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  • Chart of Accounts
  • 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
  • Government accounting
  • 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.

Accounting Transactions Accounting Transactions Presentation Transcript

  • WASBO New School Administrators & Business Support Staff Workshop August, 2007 Wisconsin Department of Public Instruction ACCOUNTING TRANSACTIONS
  • WUFAR 101
    • W isconsin U niform Financial
    • A ccounting R equirements
      • It is a multi-dimensional reporting system that can also be used as an accounting system
      • Not required accounting, but required reporting
      • Always used in conjunction with the Budget and Annual Reports
      • Download off website http:// dpi.wi.gov/sfs/wufar.html
  • WUFAR Account Format
    • Fund Location Object/ Function Program/
    • Source Project
    • ----------------------------------------------------------------
    • XX XXX XXX XXXXXX XXX
    • 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.
  • Wisconsin Uniform Financial Accounting Requirements - cont.
    • Code numbers are arranged in hierarchical order. A zero (0) in any position of a code represents a total of more detailed account codes.
    • The following is an example of a hierarchy in the source dimension:
    • Fund Function Description
    • 10R 000000 210 Taxes
    • 10R 000000 240 Payment for Services
    • 10R 000000 260 Non-Capital Sales
    • 10R 000000 270 School Activity Income
    • 10R 000000 280 Earnings on Invest
    • 10R 000000 290 Other Local Sources
    • 10R 000000 200 Total Local Revenue
  • Wisconsin Uniform Financial Accounting Requirements – cont
    • Code numbers are arranged in hierarchical order. A zero (0) in any position of a code represents a total of more detailed account codes.
    • The following is an example of a hierarchy in the expenditure dimension:
    • Fund Function Description
    • 10E 120000 100 Salaries
    • 10E 120000 200 Employee Benefits
    • 10E 120000 300 Purchased Services
    • 10E 120000 400 Non-Capital Objects
    • 10E 120000 500 Capital Objects
    • 10E 120000 900 Other Objects
    • 10E 120000 000 Total Regular Curriculum
  • FUND:
    • 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
  • FUND
    • STAND ALONE ACCOUNTING ENTITY
    • BALANCE SHEET, REVENUES AND EXPENDITURES FOR EACH FUND
    • WITHIN FUND, “DEBITS” MUST EQUAL “CREDITS” (the fund must be self-balancing)
    • CHANGE IN FUND BALANCE EQUALS DIFFERENCE BETWEEN FUND REVENUES AND EXPENDITURES
  • FUND
    • ENDING FUND BALANCE MINUS BEGINNING FUND BALANCE = REVENUES MINUS EXPENDITURES
    • MORE REVENUES THAN EXPENDITURES MEANS MORE FUND BALANCE AT END OF YEAR
  • GENERAL FUND
    • FUND 10
    • FINANCIAL TRANSACTIONS RELATING TO CURRENT OPERATIONS NOT REQUIRED TO BE ACCOUNTED FOR IN OTHER FUNDS
  • SPECIAL PROJECTS 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
    • 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
  • DEBT SERVICE FUNDS
    • FUND 38
    • Repayment of debt issues that were either; not authorized by school board resolution before August 12, 1993, or incurred without referendum approval after that date.
    • FUND 39
    • Repayment of debt issues that were either; authorized by school board resolution before August 12, 1993, or approved by referendum.
  • CAPITAL PROJECTS FUNDS
    • FUNDS 41, 48 AND 49
    • RECORDING EXPENDITURES FINANCED THROUGH BONDS, PROMISSORY NOTES, STATE TRUST FUND LOANS, LAND CONTRACTS OR TAX LEVY (EXPANSION FUND OR TIF )
  • FOOD SERVICE FUNDS
    • FUND 50
    • ACCOUNT FOR THE DISTRICT’S FOOD SERVICE ACTIVITIES
    • ACTIVITIES RELATING TO PUPIL AND ELDERLY FOOD SERVICE ACTIVITIES
  • AGENCY FUND
    • FUND 60
    • ACCOUNT FOR ASSETS HELD BY THE DISTRICT FOR PUPIL ORGANIZATIONS.
    • ONLY BALANCE SHEET ACCOUNTS FOR THIS FUND ARE REPORTED IN THE BUDGET AND ANNUAL REPORTS.
  • TRUST FUNDS
    • ASSETS HELD BY THE DISTRICT IN A TRUSTEE CAPACITY FOR INDIVIDUALS, PRIVATE ORGANIZATIONS, OTHER GOVERNMENTS AND/OR OTHER FUNDS
    • FUND 72
    • ACCOUNTS FOR GIFTS AND DONATIONS SPECIFIED FOR THE BENEFIT OF PRIVATE INDIVIDUALS AND ORGANIZATIONS NOT UNDER THE CONTROL OF THE SCHOOL BOARD
    • FUND 73
    • ACCOUNTS FOR RESOURCES HELD IN TRUST FOR FORMALLY ESTABLISHED DEFINED BENEFIT PENSION PLANS, DEFINED CONTRIBUTION PLANS OR EMPLOYEE BENEFIT PLANS
    • FUND 76
    • ACCOUNTS FOR NON-DISTRICT PORTION OF INVESTMENT POOL SPONSORED BY THE DISTRICT
  • COMMUNITY SERVICE FUNDS
    • FUND 80
    • ACTIVITIES WHERE THE PRIMARY FUNCTION IS TO SERVE THE COMMUNITY AND ARE OUTSIDE THE REGULAR AND EXTRACURRICULAR PROGRAMS FOR STUDENTS
  • PACKAGE AND COOPERATIVE PROGRAM FUNDS
    • MULTIDISTRICT PROJECTS FOR WHICH IT IS NECESSARY TO KEEP A SEPARATE RECORD OF ACTIVITY SO THAT PARTICIPANT DISTRICTS’ SHARE CAN BE DETERMINED
    • FUND 91
    • EXPENDITURES MADE BY A HOST DISTRICT FOR PROGRAMS MADE AVAILABLE TO OTHER DISTRICTS THROUGH A CESA
    • FUND 93
    • CONSORTIA PROGRAMS FUNDED WITH LOANS FROM THE TEACH WISCONSIN BOARD
    • FUND 99
    • ALL OTHER TYPES OF COOPERATIVE INSTRUCTIONAL FUNDS- NEVER REPORT SPECIAL EDUCATION
  • SOURCE & OBJECT
    • The Source dimension is used to classify revenues and other fund sources by their origins.
    • The Object dimension is used to identify the service or commodity used in accomplishing a function.
  • REVENUE SOURCES
    • REVENUE CODING: 2 QUESTIONS
    • “ WHO’S PAYING THE MONEY?”
    • “ WHAT IS IT FOR?”
  • REVENUE CODING
    • SOURCE CODES
      • LOCAL (SOURCE 200 )
      • A WI DISTRICT (SOURCE 300 )
      • DISTRICT OUTSIDE WI (SOURCE 400 )
      • INTERMEDIATE EDUCATIONAL AGENCY (SOURCE 500 )
      • STATE AGENCY (SOURCE 600 )
      • FEDERAL AGENCY (SOURCE 700 )
      • OTHER FINANCING (SOURCE 800 )
      • OTHER REVENUES (SOURCE 900 )
  • EXPENDITURE OBJECTS
    • NORMAL RULE:
    • EXPENDITURES ARE CHARGED TO THE FISCAL PERIOD WHEN THE SERVICES ARE PROVIDED, SUPPLIES ARE USED OR EQUIPMENT IS ACQUIRED.
  • OBJECT CODING
    • MOST-USED OBJECT CODES
    • Salaries ( 100 Objects)
    • Fringe Benefits ( 200 Objects)
    • Purchased Services ( 300 Objects)
    • Non-Capital Objects ( 400 Objects)
    • Capital Objects ( 500 Objects)
    • Debt Retirement ( 600 Objects)
  • FUNCTION CLASSIFICATION
    • FUNCTION DESCRIBES THE PURPOSE FOR WHICH A SERVICE OR MATERIAL OBJECT IS ACQUIRED.
    • Reporting to DPI is at the 2 or 3-digit function level, but local districts can use more detail for tracking expenditures.
  • FUNCTIONAL CODING
    • THE QUESTION TO ANSWER:
    • Which defined purpose caused the revenue or expense to be incurred???
    • Defined Purposes: (AKA: FUNCTIONS)
    • 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
  • RESOURCES
    • WUFAR link located at: http://www.dpi.state.wi.us/sfs/wufar.html
  • PROPERTY TAX LEVIES
  • 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
  • DEBT SERVICE TAX LEVY
    • Levy for the calendar year - budget for the fiscal year ending June 30
    • Example:
      • LT Debt Payments Due (principal & interest)
        • October, 2007 $101,000
        • March, 2008 $502,000
        • October, 2008 $ 98,000
      • Levy in November, 2007
        • ($502,000 + $98,000)
      • Budget for 2007-08
        • ($101,000 + $502,000)
  • PROPERTY TAX REFUNDS
    • USUALLY PAYMENT TO MUNICIPALITY FOR UNCOLLECTED PERSONAL PROPERTY TAXES
      • FUND 10 FUNCTION 490 000 OBJECT 972
      • (10 E 490 000 972)
    • COLLECTION OF REFUND
      • FUND 10 SOURCE 972 (10 R 000 000 972)
    • SOURCE 212 LEVY – NET PAYMENTS *
      • OPTIONAL
      • NOT NEGATIVE
      • *object 972 minus source 972
  • PROPERTY TAX REFUNDS (cont’d)
    • 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
  • SOURCE/OBJECT 971/972
    • Source/Object 971 “Refund of Prior Year Expense”
      • E-Rate Refunds, Insurance Refund, CESA Refund, Dividend’s on Worker’s Compensation
    • Source/Object 972 “Property Tax and Equalization Aid Refund”
      • Property Tax Refund, Equalization Aid Refund, Taxpayer Levy Refund, Special DPI Approved Amount
  •  
  • STATE AND FEDERAL AID
  • STATE AND FEDERAL AID
    • ENTITLEMENTS
      • MOST BIG $ PROGRAMS
        • GENERAL AID, SPECIAL EDUCATION,TRANSPORTATION,SAGE
      • REVENUE WHEN $ APPROPRIATED
    • REIMBURSABLE GRANTS
      • “ GRANT” PROGRAMS
        • CLAIMED ON PI 1086, SOURCE 630/730
      • REVENUE WHEN REIMBURSABLE EXPENDITURE OCCURS
  • ACCOUNTING FOR DELAYED EQUALIZATION AID PAYMENT
  • ACCOUNTING FOR DELAYED EQUALIZATION AID PAYMENT
    • Cash $1,496,409
    • 10E 435000 382 149,882
      • 10R 621 $1,504,684
      • 10R 345 141,607
    • Receivable 715500 $ 72,291
    • 10R 621 $ 72,291
  • Grant Receivables
    • 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.
  • Grant Receivables
    • Why do it this way?
    • 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.
  • Grant Receivables
    • Example:
    • 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
  • Grant Receivables
    • July 1, 2006 July 1, 2007
    ✔ 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)
  • DEBT
  • CASH FLOW BORROWING
    • GENERAL FUND TRANSACTION
      • BALANCE SHEET TRANSACTION FOR PRINCIPAL
      • INTEREST EXPENSE – ACCRUAL AT JUNE 30
    • INTEREST REVENUE
      • IN FUND PRODUCING INCOME
      • INTEREST RECEIVABLE AT JUNE 30
  • CASH FLOW BORROWING (cont’d)
    • Accounting transactions:
      • Dr. Cash $1,000,000
      • Cr. Temporary Notes Payable $1,000,000
          • (Acct. 10B 811 100)
      • Dr. Interest Expense $ 40,000
          • (10E 682 281 000)
      • Cr. Interest Payable $ 40,000
          • (10B 811 700)
  • CAPITAL LEASE
    • “ BORROWING” FROM A VENDOR TO ACQUIRE ITEM
    • JOURNAL ENTRY TO RECORD FINANCING TRANSACTION
    • PRINCIPAL AND INTEREST PAYMENT TRANSACTIONS AS PAYMENTS ARE MADE (object 678/688, function 281000)
  • 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 purposes—must notify DPI
  • 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
  • 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
  • WHAT HAPPENS IF DEBT SERVICE EXPENDITURES ARE CODED INCORRECTLY ?
    • SHARED COST MAY BE CALCULATED INCORRECTLY, RESULTING IN WRONG AID BEING PAID TO DISTRICT
    • DISTRICT’S ANNUAL REPORT DEBT TABLE WILL NOT RECONCILE FROM BEGINNING TO END OF YEAR
  • 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
  • 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
      • Be sure that the function 281000, 283000, 285000, 289000 principal and interest amounts used in your general ledger agree to debt schedules
  • PAYROLL
  • 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
  • UNSETTLED EMPLOYEE CONTRACTS
    • If mediation/arbitration when filing report—lowest offer is recorded
    • If settlement occurs after filing report but before October 1, amend report to show increased cost
    • Settlement occurs after October 1—additional cost is reported in year settlement occurs
  • COMPENSATED ABSENCES
    • 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”.
  • SPECIAL EDUCATION
  • Fund 27
    • Fund 27 is where revenues & expenses related to special ed are recorded.
    • Fund 27 acts like a “sub fund” to Fund 10 (general operations).
    • Fund 10 must always make a balancing entry in the form of a transfer to Fund 27 at the end of the year.
    • Fund 27 must have a “0” ending fund balance.
  • Fund 27 - What’s up with that??
    • Fund 27 identifies Special Education Costs.
    • A portion of these eligible costs are reimbursed with a categorical aid.
    • A categorical aid is State aid that is intended for a specific purpose.
  • 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
  • SPECIAL EDUCATION PROGRAMS
        • Many different types of special education programs
          • PROGRAM OPERATED BY THE DISTRICT (DISTRICT EMPLOYS PERSONNEL)
          • PROGRAM OPERATED WITH A CONSORTIUM OF SCHOOLS
          • PROGRAM OPERATED BY CESA
          • PROGRAM OPERATED BY CCDEB
        • Costs funded by a combination of state, local and federal dollars
  • COOPERATIVE AGREEMENT 66.0301
  • COOPERATIVE AGREEMENT 66.0301
    • MULTIDISTRICT PROJECTS WITH COOP AGREEMENT
    • ONE DISTRICT ACTS AS FISCAL AGENT
      • MAINTAIN REVENUE AND EXPENDITURE RECORDS
    • FISCAL AGENT AGREEMENT STRONGLY ENCOURAGED
      • IDENTIFIES RESPONSIBILITIES OF BOTH THE FISCAL AGENT AND INDIVIDUAL GRANT RECIPIENTS
  • COOP TRANSACTION CODING
    • FISCAL AGENT AGREEMENT:
      • http:// dpi.wi.gov/sfs/coop_agree.html
  • COOP TRANSACTION CODING (Cont.)
    • FUND 99
      • OTHER THAN SPECIAL EDUCATION
        • REVENUES MUST EQUAL EXPENDITURES
        • COST PRORATED TO PARTICIPATING DISTRICTS
        • FISCAL AGENT PORTION TRANSFERRED FROM FUND 10
  • FUND 27 COOP TRANSACTION CODING
    • FUND 27
      • MULTIDISTRICT PROGRAM FOR SPECIAL EDUCATION
      • FISCAL AGENT DISTRICT INCURS ALL EXPENDITURES
        • MUST HIRE STAFF
      • FISCAL AGENT DISTRICT BILLS PARTICIPATING DISTRICTS FOR TOTAL COST OF PROGRAM
  • COOP TRANSACTION CODING (Cont.)
    • FUND 27
      • FISCAL AGENT DISTRICT FILES CATEGORICAL AID CLAIM
      • SPECIAL EDUCATION AID RECEIVED BY FISCAL AGENT DISTRICT
      • FISCAL AGENT DISTRIBUTES AID TO PARTICIPATING DISTRICTS
      • FISCAL AGENT PORTION REMAINS IN FUND 27
  • PURCHASED INSTRUCTIONAL SERVICES (FUNCTION 430 000)
    • INSTRUCTIONAL SERVICES PROVIDED RESIDENT DISTRICT BY OTHER ENTITIES
    • LINKED WITH A 300 “PURCHASE SERVICE” OBJECT
    • NON-INSTRUCTIONAL SERVICES CHARGED TO APPROPRIATE 200 000 FUNCTION WITH 300 OBJECT
  • OTHER ISSUES
  • FUND 21 - GIFTS
    • Gifts specified by donor to be used for operating purposes ( playground equipment, school nurse, beautification of grounds)
    • Includes both expendable and non-expendable portion
    • http://www.dpi.wi.gov/sfs/wufar.html
  • COMMODITIES
    • Obtained from the commodity internet system at: http://www.dpi.wi.gov/fns/index.html
    • The total value of commodities received is in the CARS Report and is labeled “Total Value Received: Entitlement, Bonus, DoD, and Cheese Processing.”
    • Year end entry:
      • Debit Function 257000, Object 410
      • Credit Source 714
  • COMMODITY HANDLING CHARGES
    • Aids register –
      • Federal food service aid is reported at gross amount
      • Commodity handling charge is reported as a negative amount (titled 714)
    • Accounting –
      • Federal Food Service Aid – Source 717
      • Commodity Handling Charge – Function 257000, Object 387
  • AGENCY FUND 60
    • Student organizations and clubs
    • Students manage activities and faculty advisor approves transactions
    • District acts as agent maintaining records and accounting for activity
    • School Board responsible for establishment and enforcement of policies and procedures to safeguard agency assets
    • District may establish agency fund for parent organizations
    • Guidance on developing policies and procedures http://www.dpi.state.wi.us/sfs/doc/stud_acct.doc
  • FUND 73 EMPLOYEE BENEFIT TRUST FUND
    • 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
  • FUND 73 EMPLOYEE BENEFIT TRUST FUND
    • Must have on file with DPI:
      • Actuary study or allowed alternative method
      • Board minutes approving establishment of a trust
      • Trust agreement
      • Legal opinion on the trust
  • FUND 73 EMPLOYEE BENEFIT TRUST FUND
    • Trust must be irrevocable
    • Contribution to the trust must be used for purpose trust is established
    • Reported as an expenditure by district and is included in shared cost
  • SALE OF SCHOOL PROPERTY
    • Statute 120.10(12) states that the school board has the power to “authorize the sale of any property belonging to and not needed by the school district.
    • Generally recorded in Fund 10 under source 860
    • District may choose to place the revenue in another fund but only if so designated at the district’s annual meeting
  • 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 IBNR COSTS
  • 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
  • QUESTIONS?
      • School Finance Auditors
      • Kathy Guralski - (608) 266-3862
      • [email_address]
      • Gene Fornecker - (608) 267-7882
      • [email_address]
      • Natalie Rew - (608) 267-9212
      • [email_address]