Commonwealth Payments & Reporting Process

1. PASBO – 51st Annual Conference March 2006 Commonwealth Payments&Reporting Process Presented by: Anita Butcher Jonathan Hollenbach Staff Accountant Staff Accountant School Finance Division School Finance Division Labor, Education and Community Services Labor, Education and Community Services Comptroller’s Office Comptroller’s Office Voice: (717) 783-9010 Voice: (717) 783-9008 Facsimile: (717) 787-3593 Facsimile: (717) 787-3593 E-mail: abutcher@state.pa.us E-mail: joholleba@state.pa.us

2. What services are provided by the Labor, Education and Community Services (LECS) Comptroller’s Office? • The LECS Comptroller’s Office provides accounting and audit services to three agencies. • The Department of Education • The Department of Labor and Industry • The Department of Community and Economic Development • The LECS Comptroller’s Office performs a dual function in carrying out their responsibilities and duties. • First, on behalf of the Secretary of the Budget, they are to ensure that appropriation commitment and spending does not exceed the Governor’s established budget, and that all funds administered by agencies are expended and accounted for properly. • Second, they are the chief financial accounting officers of the agencies served. As such, they are a valuable resource to agency heads and agency staff concerning matters relating to financial and service contracting policies and procedures. • Third, Section 1501 of the Fiscal Code assigns explicit authority to LECS Comptroller’s Office for approving and disapproving requisitions for payments drawn on the Treasury Department.

3. What Divisions within LECS process payments to School Districts? • Federal Subsidies Division • Document Review and Control • School Finance Division

4. The Division of School Finance is part of what organization? The Office of the Budget, Comptroller Operations

5. Is the Office of the Budgeta division of the Department of Education? • No, it is a separate agency. The Labor, Education and Community Services (LECS) Comptroller’s Office is separate for the purpose of providing checks and balances within the state government. • School Finance is just a facet of the Comptroller’s Office, that also includes Federal Accounting, an Audit Division, Special Accounting, General Accounting, Document Review and Control, Administration, and Labor & Industry Federal Accounting.

6. Are all State Subsidy payments processed by the School Finance Division? • No! • Federal Accounting processes Project payments and Food Service Reimbursement Claims. • Document Review and Control processes State Subsidy Payments and Early Intervention.

7. Where can I go to find information on payments? • Through the Financial Accounting Information (FAI) system • User registration request via ePDE Web Portal • ePDE help desk (717) 783-6788. • Penn-Link notifications of payments, as well as, deductions. • Yearly document packet sent in June

8. What information can I obtain from FAI? • Project Information • Quarterly Reconciliation of Cash on Hand • Payment Detail Information (10 year history) • Audit Confirmation Reports • Account Coding for Payments

9. What information can I obtain from the LECS Comptroller’s Office Website? The LECS Website Address is:www.pde.state.pa.us/School_Acct • Forms, Instructions and Procedures • Payment Schedules • Bank Deposit Change Forms • Access Services to the ePDE Web Portal • Accounting Guidance • Annual Financial Report • Manual of Accounting • Tuition Rates

10. It is our goal to have you find the content of our webpage informative and easy to navigate. Any suggestions you may have will be gladly accepted at 00comptroll@psupen.psu.edu

11. What is a Unipay? • A Unipay is an accumulation of School Finance payments all processed and transferred at the same time in a given month. • The Unipay is paid on the last Thursday of each month. If this day happens to be a holiday, the payment will be transferred on the previous day. • The June 1st Unipay will pay on June 1st, or the first business day preceding the 1st.

12. What programs are processed by the School Finance Division that are NOT included with the Unipay? • Social Security payments are paid on the first Thursday of each month. • School Employees’ Retirement payments are paid quarterly, around the middle of the month. (September, December, March, and June). • I.U. Nonpublic Services (Aug 1st, Oct 1st, Feb 1st)

13. MonthTreasury Payment DateJanuary - Unipay 01/26/2006February – Non-Public 02/01/2006February – Unipay 02/23/2006March – Unipay 03/30/2006April – Unipay 04/27/2006May – Unipay 05/25/2006June 1st – Unipay 06/01/2006June – Unipay 06/29/2006July – Unipay 07/27/2006August – Non-Public 08/01/2006August – Unipay 08/31/2006September – Unipay 09/28/2006October – Non-Public 9/29/2006October – Unipay 10/26/2006November – Unipay 11/30/2006December – Unipay 12/28/2006 2006 Unipay Schedule

14. 2006 Social Security Schedule Month Treasury Payment Date January 01/05/2006 February 02/02/2006 March 03/02/2006 April 04/06/2006 May 05/04/2006 June 06/01/2006 July 07/06/2006 August 08/03/2006 September 09/07/2006 October 10/05/2006 November 11/02/2006 December 12/07/2006

15. 2006 Retirement Schedule Month Treasury Payment Date March 03/16/2006 June 06/16/2006 September 09/18/2006 December 12/18/2006

16. What payments do the School Finance Division process, and when can LEA’s expect Major State Subsidy Payments?

17. What payments do the School Finance Division process, and when can LEA’s expect majorstate subsidy payments? (Continued)

18. What payments do the School Finance Division process, and when can LEA’s expect majorstate subsidy payments? (Continued)

19. What payments do the School Finance Division process, and when can LEA’s expect majorstate subsidy payments? (Continued)

20. What payments do the School Finance Division process, and when can LEA’s expect majorstate subsidy payments? (Continued)

21. What is the Basic Education Funding Payment Schedule? Payment Schedule August Estimated current year gross allocation minus estimated deductions*times 15 percent. October Same as August December Estimated current year gross allocation minus estimated deductions*times 15 percent minus IU Operating deduction. February Same as August and October April Same as August, October and February June 1 Basic Education Funding Formula by State Law. Total gross allocation minus deductions (if applicable) equals adjusted gross allocation. This amount minus first five (5) payments minus deductions (current year deductions and prior year adjustments) equals the final payment. *Estimated deductions – 110 percent of prior year IU Transportation, IU Institutionalized Children, PRRI, Approved Private Schools, and Scranton & Scotland school tuition deductions (exception: change in law affecting deduction calculations)

22. July Approved Private Schools Authority Rental and Sinking Funds Community Colleges Intermediate Unit Operating School Employees’ Social Security Special Education PA Accountability Grant August Approved Private Schools Authority Rentals and Sinking Funds Basic Education Funding Community Colleges Intermediate Unit Transportation Intermediate Unit Special Education Nonpublic School Services Private Residential Rehabilitative Institutes Reimbursement for Charter School Expenses School Employees’ Social Security School District Transportation Vocational Education September Approved Private Schools Authority Rentals and Sinking Funds Licensed Practical Nursing PA Charter Schools Private Residential Rehabilitative Institutes Pupil Transportation School Employees’ Social Security School Employees’ Retirement Special Education October Approved Private Schools Authority Rentals and Sinking Funds Basic Education Funding Incarcerated Education Nonpublic School Services PA Charter Schools Pupil Transportation School Employees’ Social Security School District Transportation Vocational Education Reimbursement for Charter School Expenses Monthly Payment Cycle

23. November Approved Private Schools Authority Rentals and Sinking Funds Intermediate Unit Special Education PA Charter Schools Pupil Transportation School Employees’ Social Security Special Education December Approved Private Schools Authority Rentals and Sinking Funds Basic Education Funding Community Colleges Education Assistance Program Improvement Grants Incarcerated Education Licensed Practical Nursing Pupil & Nonpublic Transportation School Employees’ Social Security School Employees’ Retirement School District Transportation Vocational Education January Approved Private Schools Authority Rentals and Sinking Funds Intermediate Unit Operating Intermediate Unit Transportation PA Charter Schools School Employees’ Social Security Special Education February Approved Private Schools Authority Rentals and Sinking Funds Basic Education Funding PA Charter Schools Nonpublic School Services Private Residential Rehabilitative Institute Reimbursement for Charter School Expenses Monthly Payment Cycle • December • Reimbursement for Charter School Expenses • PA Charter Schools

24. March Approved Private School Authority Rentals and Sinking Funds Community Colleges Education Assistance Program Licensed Practical Nursing School Employees’ Social Security School Employees’ Retirement Pupil Transportation Special Education Vocational Education(Adult & Travel) Reimbursement for Charter School Expenses PA Charter Schools May Approved Private Schools Authority Rentals and Sinking Funds Education Assistance Program Intermediate Unit Transportation PA Charter Schools School Employees’ Social Security June 1st Basic Education Funding Intermediate Unit Special Education Vocational Education Reimbursement for Charter School Expenses Monthly Payment Cycle • February • School Employees’ Social Security • Vocational Education • Education Assistance Program • Incarcerated Education • April • Approved Private Schools • Authority Rentals and Sinking Funds • Basic Education Funding • Education Assistance Program • PA Charter Schools • Payment in Lieu of Taxes • Reimbursement for Charter School Expenses • School Employees’ Social Security • Vocational Education

25. Monthly Payment Cycle • June Approved Private Schools Audit Adjustments/Subsidy Revisions Authority Rentals and Sinking Funds Community Colleges PA Charter Schools Driver’s Education Extraordinary Special Education Contingency Homebound Education School Improvement Grants Licensed Practical Nursing Payment in Lieu of Taxes Public and Nonpublic Transportation School Employees’ Social Security School Employees’ Retirement School District Special Education School District Transportation Tuition for Orphans and Children Placed in Private Homes

26. I have received the funds, now how should I record them? You will receive a payment letter and/or deduction letter via PennLink roughly one week before each payment. It will include instructions on the correct revenue codes to use. It is important that you SAVE THESE LETTERS for audit purposes. The following page lists common Revenue Codes and Program Area Codes. Program Area Codes can also be found listed with each payment on the FAI system.

27. REVENUE & PROGRAM CODES2005-2006 FISCAL YEAR REVENUE PROGRAM REVENUE PROGRAM DESCRIPTION CODE CODE DESCRIPTION CODE CODE REIMBURSMENT OF CS 7140 793 ACT 30 PRRI 7299 595 ACCOUNTABILITY GRANTS 7501 547 OOS SP ED REIMB (APS) 7271 599 COMM COLLEGE 530 APPR PRIV SCH 596 TUITION TRANSFER 6944 531 APPR PRIV SCH ADJ 6991 996 INCARCERATED ED 6944 532 HOMEBOUND 7210 605 AID DISTRESSED SD 7110 533 HOMEBOUND ADJ 7210 606 INCARCERATED REV 6944 534 HOMEBOUND BAL DUE 7210 607 BASIC ED FUNDING 7110 535 ED INDIGENT CH 7160 615 BAS ED FUND BAL DUE 7110 539 IU SEC 1306 7160 623 REPAYMENT OF LOAN 541 SEC 1305 & 1306 7160 624 BASIC ADJ 7110 941 SEC 1305 & 1306 BAL 7160 626 ACT 30 PRRI 7299 536 SEC 1305 & 1306 ADJ 7160 924 PRRI DEDUCT ADJ 6991 944 IN LIEU OF TAXES 6114 625 SECTION 2564 (TUIT DUE) 6944 537 IMPROVEMENT GRANT 7170 637 IU OPERATING 7120 538 TECHNOLOGY NP SCHS 7900 640 REV TUITION DED 6991 945 NONPUBLIC TRANSPORTATION 7310 675 APPR PRIV SCH ADJ 6991 946 NP TRANSP BAL DUE 7310 676 PA CHARTER SCH 544 NP TRANSP ADJ 7310 975 PA CHARTER SCH ADJ 6991 545 TECH INITIATIVE (YSYM) 7599 794 CS TRANSITIONAL 7140 791 IU OPERATING 7120 690 ACT 89 NP 7700 565 PERFORMANCE INCENTIVES 7150 692 RENTAL SUBSIDY 7320 575 PHILA SCHOOL DIST 7599 666 IU TRANSPORTATION 7310 580 RETIREMENT 7820 726 SD TRANSPORTATION 7310 581 SOCIAL SECURITY 7810 725 SD TRANSP BAL DUE 7310 582 REIMB OF ADDT BASIC 7340 540 SD TRANSP ADJ 7310 981 VOCATIONAL ED 7220 751 PA CHARTER SCH 543 VOCATIONAL ED ADJ 7220 951 APPROVED PRIVATE SCH 546 TRAVEL VOC ED 7220 754 SP ED CORDERO 7271 585 LPN PROGRAM 7220 755 IU SP ED EXTRAORD 7271 586 ADULT VOC ED 7220 756 IU INSTITUTION CH 7271 589 DRIVER ED 7240 775 IU SP ED ADJ 7271 990 EDUCATION ASSISTANCE 7291 771 SD SPECIAL ED 7271 591 EDUCATION ASSISTANCE 7291 770 TUITION TRANSFER 6944 592 DISTRESSED SD 7110 780 SD SPECIAL ED ADJ 7271 991 DISTRESSED SD ASST 7110 781 PRRI SPECIAL ED ADJ 7299 994 EMPOWERMENT SD 7170 782 SD SP ED EXTRAORD 7271 593 TEMP SPEC AID 7299 802 IU SP ED CORE SERV 7271 594 APPR PRIV S AUDIT 998 SP ED REV TUIT DED 6991 947 APPR PRIV S AUDIT 795 SP ED WARDS OF STATE 7271 598

28. DEDUCTION DESCRIPTIONS AND CODES