ACCOUNTING ISSUES AND CODING EXAMPLES. Kathy Guralski, Auditor, ... The first webcast focused on the Wisconsin Uniform Financial Accounting Requirements
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Kathy Guralski, Auditor, School Finance Team
Wisconsin Department of Public Instruction
Only certain funds are allowed to make transfers to other specific funds
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
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)
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
Funds other than the General Fund
Funds other than the General Fund
300 – Source is a Wisconsin School District
400 – Source is an Out of State School District
500 – Source is a CESA or CCDEB
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
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.
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
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.
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
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!)
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).
850 – Reorganization Settlement
860 – Compensation for Sale of Loss of Fixed Assets
870 – Long-Term Debt Proceeds
950 – Contribution to Employee Benefit Trust
960 – Adjustments
970 – Medical Service Reimbursements
990 – Other Miscellaneous Revenues
*object 972 minus source 972
School Finance Auditors
Kathy Guralski - (608) 266-3862
Gene Fornecker - (608) 267-7882
Natalie Rew - (608) 267-9212