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WUFUR Basics Part 2 PowerPoint PowerPoint PPT Presentation

ACCOUNTING ISSUES AND CODING EXAMPLES. Kathy Guralski, Auditor, ... The first webcast focused on the Wisconsin Uniform Financial Accounting Requirements

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ACCOUNTING ISSUES AND CODING EXAMPLES

Kathy Guralski, Auditor, School Finance Team

Wisconsin Department of Public Instruction

2007


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Audio Difficulties?

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  • Contact your IT department


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  • This presentation is the second webcast that will focus on reporting by public elementary and secondary schools in the State of Wisconsin.

    • The first webcast focused on the Wisconsin Uniform Financial Accounting Requirements “WUFAR”

    • This second webcast will provide you with examples of revenue accounting transactions and how to properly account for them

    • The third webcast will provide you with examples of expenditure accounting transactions and how to properly account for them


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ACCOUNTING ISSUES AND CODING EXAMPLES

  • http://www.dpi.state.wi.us/sfs/wufar.html


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REVENUE CODING

SOURCE CODES

  • TRANSFERS – IN FROM ANOTHER FUND (SOURCE 100)

  • 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)


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SOURCE 100INTERFUND TRANSFERS

Only certain funds are allowed to make transfers to other specific funds

Operating Transfers

An operating transfer is used to subsidizeactivities in another fund

Must be used with function 411000

Indirect Cost Transfers

An indirect cost transfer is used for payment to the district’s general fund for administrative and other “indirect” charges

Must be used with function 418000

Residual Balance Transfers

A residual balance transfer is used to close out the fund balance in the fund sending the transfer

Must be used with function 419000


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SOURCE 100INTERFUND TRANSFERS

Most common operating fund transfers

Transfer from fund 10 to fund 27 (27R 411000 110)

Transfer from fund 10 to fund 38 (38R 411000 110)

Transfer from fund 10 to fund 50 (50R 411000 110)

Transfer from fund 10 to fund 99 (99R 411000 110)

Most common indirect cost transfers

Transfer from fund 27 to fund 10 (10R 418000 127)

Transfer from fund 99 to fund 10 (10R 418000 199)

Most common residual balance transfers

Transfer from fund 49 to fund 39 (39R 419000 149)

Transfer from fund 39 to fund 10 (10R 419000 139)


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SOURCE 200REVENUE FROM LOCAL SOURCES

210 – Taxes

220 – Payments in Lieu of Taxes (Milwaukee only)

240 – Payments for Services

250 – Food Service Sales

260 – Non-Capital Sales

270 – School Activity Income

280 – Earnings on Investments

290 – Other Revenues from Local Sources


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PROPERTY TAX TRANSACTIONShttp://www.dpi.state.wi.us/sfs/doc/prop_tax.doc


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PROPERTY TAX LEVIES

  • 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.)

  • May levy in funds 10, 38, 39, 41, 80


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PROPERTY TAX LEVIES

  • Entry to set up the current tax levy upon certification (November)

    General Fund

    Funds other than the General Fund


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PROPERTY TAX LEVIES

  • District receives taxes from municipalities February and August

    General Fund


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PROPERTY TAX LEVIES

  • Transfer of cash from fund 10 to other funds

    General Fund

    Funds other than the General Fund


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PAYMENTS FOR SERVICES

  • You are providing a service and receiving payment for that service

  • Example:

    • Non-resident student attending your district

      • Student is not open-enrolled

      • Resident district is not paying tuition

      • Parent is paying tuition

      • Source 241


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GIFTS

  • Gifts specified by donor to be used for operating purposes (i.e.playground equipment, school nurse, beautification of grounds)

  • Source 291

  • Generally reported in Fund 21

  • http://www.dpi.wi.gov/sfs/doc/fund21.doc


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OTHER REVEUE FROM LOCAL SOURCES

  • Source 290

    • Student Fees/Fines

      • Regular school year fees for consumables, locker, towel, equipment usage, etc.

    • Rentals

      • Rental of district property from other than charges to students

      • Example - Local organization use of a room

    • Textbooks Revenues

      • Rental or sale of textbooks to pupils

    • Summer School Revenue

      • Fees collected for summer school programs

      • This will be requested by your auditor if your district has a membership audit


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SOURCES 300, 400 AND 500

300 – Source is a Wisconsin School District

400 – Source is an Out of State School District

500 – Source is a CESA or CCDEB


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PAYMENTS FOR SERVICE

  • Transit of Aids (310, 510)

    • Examples -

      • Another entity provides special education services for a resident student either on a tuition basis or as the fiscal agent for a cooperative program. Your district pays them for the service. They file for the aid which is received in the subsequent year. They transit to you the portion of the aid associated with the cost you reimbursed them for.

      • Your District is being reimbursed by another entity for cost you incurred that are part of a cooperative or packaged program with another school district, CESA or CCDEB. The other entity is claiming those costs on a state or federal grant and using the funds received on the grant to reimburse your district.


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PAYMENTS FOR SERVICE

  • Payments for Services (340, 440, 540)

    • Examples –

      • Open Enrollment – Charges to other school districts for instructional services your district provided to pupils participating in the open enrollment program (340)

      • Revenue from a CESA for instructional services your district provided to pupils (540)


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PAYMENTS FOR SERVICE

  • Payments for Services (340, 440, 540)

    • Examples

      • Cooperative Programs

        • Multi-District projects with COOP agreement

        • One District acts as fiscal agent

          • Fiscal agent maintains revenue and expenditure records

          • Cost is prorated to participating districts

          • Revenues cover expenditures

          • Fiscal agent reports the payment by the participating districts as a payment for services (source 340)


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COOP TRANSACTION REPORTING

  • Special Education COOP

    • Fiscal agent and participating districts account for activity in fund 27

  • Other types of COOP agreements

    • Fiscal agent accounts for activity in fund 99

      • Operating transfer from fund 10 is made for the fiscal agent’s portion of the cost

    • Participating districts account for their payment to fiscal agent in the appropriate fund of the activity which is most often the general fund


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COOP TRANSACTION CODING

  • Coop transaction coding

    • http://www.dpi.state.wi.us/sfs/doc/coop_trans.doc

  • Fiscal Agent Agreement Account Coding

    • http://www.dpi.state.wi.us/sfs/xls/fisagagree.xls

  • Fiscal Agent Requirements

    • http://www.dpi.state.wi.us/sfs/doc/fisagnt.doc

  • Fiscal Agent – Example of Level Three Documentation

    • http://www.dpi.state.wi.us/sfs/doc/fisagnt_example.doc

  • Link on School Financial Services website to COOP information

    • http://www.dpi.state.wi.us/sfs/coop_agree.html


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STATE AND FEDERAL AIDSOURCE CODES 600 AND 700


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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


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SOURCE 600REVENUE FROM STATE SOURCES

610 – State Aid – Categorical

620 – State Aid – General

630 – State special Project Grants

640 – State Tuition Payments

650 – State “SAGE” Aid

660 – State Revenue Through Local Governments

690 – Other Revenue from State Sources


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STATE SPECIAL EDUCATION CATEGORICAL AID

  • 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


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Fund 27

  • Fund 27 is where all revenues 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.


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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.


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How do I claim Special Ed Aid?

  • Fund 27 has its own annual claim

  • It is reported by a program installed on district computer and sent via e-mail to DPI

  • “Aid eligible” and “Non-aidable” costs are identified

  • http://www.dpi.state.wi.us/sfs/speced.html


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EQUALIZATION AID

  • Verify that your equalization aid equals what is reported in source 621

  • Aid payment schedule

    http://www.dpi.state.wi.us/sfs/pay_aid_info.html

  • Final general aid worksheet

    http://www.dpi.state.wi.us/sfs/aid_worksheets.html


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ACCOUNTING FOR DELAYED EQUALIZATION AID PAYMENT


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State Revenue Through Local Governments

  • Revenue from local governments other than school districts, CESAs and CCDEBs

  • Examples (Source 660)

    • Payments in Lieu of Taxes for DNR property

    • State financial assistance payments received from Technical Colleges and Universities


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SOURCE 700REENUE FROM FEDERAL SOURCES

710 – Federal Aid – Categorical

720 – Impact and Disaster Aid

730 – Federal Special Project Aid Transited Through DPI

750 – Elementary and Secondary Education Act (ESEA)

760 – Job Training Partnership Act (JTPA)

770 – Federal Aid Received through Municipalities and Counties

780 – Federal Aid Received through State Agencies other than DPI

790 – Other Revenue from Federal Sources


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Grant Receivables

  • Reimbursable grants are based on cost and will require filing Cost-Reimbursement claim PI-1086

  • Revenue is reported in the fiscal year that the cost is incurred

  • 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.


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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.


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Grant Receivables

Example:

Title I-A 06-07 reimbursement claim for $26,493 is completed and sent to DPI on June 29.

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

8

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!)


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Grant Receivables

06-07

07-08

08-09

July 1, 2006July 1, 2007

✔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)

✔Submit 07-08 grant claims.

✔Book 07-08 revenue in appropriate Source and end-of-year 07-08 receivable in 715000-002.

Receive 07-08 cash early in 08-09 fiscal year (shows up on 08-09 aids register)

Revenue should equal the Aids Register amount minus the beginning-of-the-year receivables (06-07 revenue) plus the end-of-year receivables (07-08 revenue).


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Aids register is available at: http://www.dpi.state.wi.us/sfs/online_ar.html


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SOURCE 800OTHER FINANCING SOURCES

850 – Reorganization Settlement

860 – Compensation for Sale of Loss of Fixed Assets

870 – Long-Term Debt Proceeds


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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


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SOURCE 900OTHER REVENUES

950 – Contribution to Employee Benefit Trust

960 – Adjustments

970 – Medical Service Reimbursements

990 – Other Miscellaneous Revenues


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SOURCE/OBJECT 971/972http://www.dpi.state.wi.us/sfs/doc/rec_exp.doc


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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


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PROPERTY TAX REFUNDS

  • PAYMENT TO MUNICIPALITY FOR UNCOLLECTED PERSONAL PROPERTY TAXES

    • FUND 10 (10 E 492 000 972)

  • COLLECTION OF REFUND

    • FUND 10 (10 R 000 000 972)

  • SOURCE 212 LEVY – NET PAYMENTS*

    • OPTIONAL

    • NOT NEGATIVE

      *object 972 minus source 972


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MEDICAID “SBS” SERVICES SOURCE 981/989

  • 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

  • http://www.dpi.state.wi.us/sfs/doc/medicaid.doc


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QUESTIONS?

School Finance Auditors

Kathy Guralski - (608) 266-3862

[email protected]

Gene Fornecker - (608) 267-7882

[email protected]

Natalie Rew - (608) 267-9212

[email protected]


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