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The Other Funds. Funds 21, 41, 60, 72, 73, 80 & 90 WASBO Accounting Conference New Business Office Staff Track. Brian Kahl DPI School Finance Auditor Bob Soldner SFS Team Director March 2014. Agenda. The Main Funds The Other Funds 21: Special Revenue Trust Fund

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the other funds

The Other Funds

Funds 21, 41, 60, 72, 73, 80 & 90

WASBO Accounting Conference

New Business Office Staff Track

Brian Kahl

DPI School Finance Auditor

Bob Soldner

SFS Team Director

March 2014

agenda
Agenda
  • The Main Funds
  • The Other Funds
    • 21: Special Revenue Trust Fund
    • 41: Capital Expansion Fund
    • 60: Agency Fund
    • 72: Private Purpose Trust Fund
    • 73: Employee Benefit Trust Fund
    • 80: Community Service Fund
    • 90: Package & Cooperative Program Fund

"The Other Funds" - WASBO Acct Conference March 2014

the main funds
The Main Funds
  • General Fund
  • Special Education
  • Debt Service
    • Non-Referendum
    • Referendum
  • Capital Projects
  • Food Service

F-10

F-27

F-38

F-39

F-49

F-50

"The Other Funds" - WASBO Acct Conference March 2014

the other funds1
The Other Funds

F-21

  • Special Revenue Trust Fund
  • Capital Expansion Fund
  • Agency Fund
  • Private Purpose Trust Fund
  • Employee Benefit Trust
  • Community Service Fund
  • Package & Cooperative Program Fund
    • Packaged Services (CESA)
    • Other Package & Coop Pgm

F-41

F-60

F-72

F-73

F-80

F-90

F-91

F-99

"The Other Funds" - WASBO Acct Conference March 2014

fund 21
Fund 21
  • Account for trust funds that can be used for district operations
  • Sources
    • Gifts
    • Donations from Private Parties
  • Expended pursuant to donor specifications, if any
  • May carry a fund balance

"The Other Funds" - WASBO Acct Conference March 2014

fund 211
Fund 21

How to use this fund?

  • District or staff controlled “activity” accounts
  • Fund raisers
  • Targeted donations
  • Tournaments or Competitions

"The Other Funds" - WASBO Acct Conference March 2014

fund 212
Fund 21
  • Permanent Fund
    • Should be used to report resources that are legally restricted to the extent that only earnings and not principal, may be used for purposes that support the district’s programs
    • Resources should benefit the government
    • Need to keep the corpus intact

"The Other Funds" - WASBO Acct Conference March 2014

fund 213
Fund 21

District/Staff “activity” funds

  • Activity groups where staff decides how to raise funds and how to appropriate them
    • Athletic Fundraisers
    • School Fundraiser (Example – Field Trips)
    • Band Uniforms
    • School Musical

"The Other Funds" - WASBO Acct Conference March 2014

fund 214
Fund 21

Why would you use Fund 21 instead of Fund 10?

  • Shared Cost (Deductible Receipt if in Fund 10)
  • Carry balances from year to year
  • Comply with donor wishes if any restrictions placed on use of funds

"The Other Funds" - WASBO Acct Conference March 2014

fund 215
Fund 21

Accounting Transactions

  • Ledger Accounts
    • Revenues
    • Expenditures
  • Balance Sheet Accounts
    • Assets
    • Liabilities
    • Equity (Fund Balance)

"The Other Funds" - WASBO Acct Conference March 2014

fund 216
Fund 21

More information:

  • When to Use Fund 21

http://sfs.dpi.wi.gov/files/sfs/doc/fund21.doc

  • WIAA and Other Tournaments and Competitions

http://sfs.dpi.wi.gov/files/sfs/doc/tournaments_hosted.doc

"The Other Funds" - WASBO Acct Conference March 2014

fund 60
Fund 60

Agency Fund

  • Used primarily to account for assets held by the district on behalf of pupil organizations
  • Parent organization funds may be accounted for here
    • May not be a separate 501(c)(3)

"The Other Funds" - WASBO Acct Conference March 2014

fund 601
Fund 60

Agency Fund

  • Only balance sheet accounts (assets & liabilities) are reported in Budget and Annual reports

But…

  • Records of receipts and disbursements must be maintained locally and will be examined during audit

"The Other Funds" - WASBO Acct Conference March 2014

fund 602
Fund 60

Pupil Organizations

  • Funds are held by the district for the benefit of the student organizations
    • District has a fiduciary responsibility
  • Students are the decision makers on how to raise money and how to spend it
    • Staff advisers only advise, do not decide

"The Other Funds" - WASBO Acct Conference March 2014

fund 603
Fund 60

Pupil Organizations

  • Student Council
  • Class of 20XX
  • National Honor Society
  • Yearbook
  • Drama Club
  • Foreign Language Club
  • Other Clubs

"The Other Funds" - WASBO Acct Conference March 2014

not fund 60
Not Fund 60
  • Activities where staff make the decisions are District Activities and accounted for elsewhere
  • Examples:
    • Athletics
    • Musical
    • Band Uniforms
    • Field Trips
    • Shop Class
    • Sunshine Club / Coffee Fund*
      • Should NOTappear anywhere on the district’s books. These are not district funds.

"The Other Funds" - WASBO Acct Conference March 2014

fund 604
Fund 60

Accounting Transactions

  • Assets
    • 711000: Cash
    • 712000: Investments
  • Liabilities
    • 814000: Due to Student Organizations
  • Equity
    • None

"The Other Funds" - WASBO Acct Conference March 2014

fund 605
Fund 60

Parent Organizations

  • District may establish agency funds for parent organizations
    • Bank accounts in the name of the district
    • Same policies/procedures as for student organizations
  • Liability Acct 818000: Due to Parent Organizations
  • Parent organizations may not use the district’s tax ID number
  • Parent organizations may not be a separate 501(c)(3)

"The Other Funds" - WASBO Acct Conference March 2014

fund 606
Fund 60

More information:

  • Agency Fund Guidelines document

http://sfs.dpi.wi.gov/files/sfs/doc/stud_acct.doc

  • Audit Program for Pupil Activity Accounts http://sfs.dpi.wi.gov/files/sfs/pdf/student_activity_funds.pdf

"The Other Funds" - WASBO Acct Conference March 2014

fund 41
Fund 41

Capital Expansion Fund

  • Projects financed with a tax levy per Wis. Stats. 120.10(10m)
    • Levy is within the Revenue Limit
  • Restricted to capital expenditures related to buildings and sites
    • Not equipment
    • Not furnishings
  • Requires approval at Annual Meeting

"The Other Funds" - WASBO Acct Conference March 2014

fund 411
Fund 41

Eligible expenditures defined:

  • For acquiring and remodeling buildings and sites, and
  • Maintenance or repair expenditures that
  • Extend or enhance the service life of building, building components, sites and site components

"The Other Funds" - WASBO Acct Conference March 2014

fund 412
Fund 41

Why use Fund 41?

  • Allows for depreciation of expenses over length of time
  • In year of spending - Reduces shared costs in aid formula
    • Can reduce the impact of negative tertiary aid for districts in that position
    • Smoothes out aid for positively aided districts.

"The Other Funds" - WASBO Acct Conference March 2014

fund 413
Fund 41

Disadvantage

  • Restricts use of limited revenues to qualifying capital expansion projects
    • Cannot be redirected to use for general operations or routine maintenance
  • Creates additional accounting / reporting requirements

"The Other Funds" - WASBO Acct Conference March 2014

slide24

Fund 41

Amortizing Expenditures Over Time

"The Other Funds" - WASBO Acct Conference March 2014

fund 414
Fund 41

A Capital Expansion document and PowerPoint can be found on the finance team page in the WUFAR link: http://sfs.dpi.wi.gov/sfs_wufar

Click on: Accounting Issues and Coding Examples

or go directly to:

http://sfs.dpi.wi.gov/files/sfs/doc/cap_expans_publish.doc

http://sfs.dpi.wi.gov/files/sfs/ppt/cap_expans_publish.ppt

"The Other Funds" - WASBO Acct Conference March 2014

fund 72
Fund 72

Private Purpose Trust Fund

  • Account for gifts and donations specified for the benefit of private individuals and organizations not under the control of the school board
    • Board acts as Trustee of account
    • Example: Scholarship Fund
    • Expenditures are made pursuant to donor specifications

"The Other Funds" - WASBO Acct Conference March 2014

fund 73
Fund 73

Employee Benefit Trust Fund

  • Used to account for resources held in trust for formally established defined benefit plans, defined contribution plans, or employee benefit plans
  • Must be legally established in accordance with state statutes, federal law, and IRS requirements
  • Legally irrevocable trust

"The Other Funds" - WASBO Acct Conference March 2014

fund 731
Fund 73

Employee Benefit Trust Fund

  • Created as a mechanism for districts to fund post-employment benefit obligations
  • Districts not required to use this
    • May opt to “pay as you go,” however, that does not help reduce the long-term liability
  • Requires actuarial study to determine funding levels

"The Other Funds" - WASBO Acct Conference March 2014

fund 732
Fund 73

Employee Benefit Trust Fund

  • District makes payments to the trust from the governmental funds (Funds 10, 27, 50, and 80) to fund annual obligations.
  • Fund 73 pays the retiree benefits

"The Other Funds" - WASBO Acct Conference March 2014

fund 733
Fund 73

Why use Fund 73?

  • To reduce the district’s long-term unfunded obligations.
  • Costs to Special Education Fund are aidable up to the ARC if one of the three criteria are met.

"The Other Funds" - WASBO Acct Conference March 2014

fund 734
Fund 73

More information:

  • Employee Benefit Trust Fund webpage

http://sfs.dpi.wi.gov/sfs_emp_benefit_trust_fund

  • Employee Benefit Fund Requirements webpage

http://sfs.dpi.wi.gov/files/sfs/doc/EBFRequirements.doc

  • Fund 73 OPEB Transaction Accounting Samples

http://sfs.dpi.wi.gov/files/sfs/Accounts%20to%20use%20for%20Fund%2073%20trust.doc

"The Other Funds" - WASBO Acct Conference March 2014

fund 80
Fund 80
  • 2013 Wisconsin Acts 20 & 46
    • District Levy Authority is Limited in 2013-14 & 2014-15
    • Hold a Referendum to Exceed Levy Limit
    • Reporting Requirements
      • District’s Website
      • District Complete DPI Fund 80 Survey
      • DPI Report to Legislature (12/1/14)

"The Other Funds" - WASBO Acct Conference March 2014

fund 801
Fund 80

Community Service Fund

  • Used to account for all activities that have the primary function of serving the community (not public school programs)
  • District may adopt a separate levy, outside revenue limits, for this Fund
    • Does not impact aid calculation

"The Other Funds" - WASBO Acct Conference March 2014

fund 802
Fund 80

Statutory References

  • School Board authority to establish
    • Wis. Stats. 120.13(19)
  • Budget reporting requirements
    • Wis. Stats. 65.90
  • Adoption of a separate levy
    • Wis. Stats. 120.10(8)
    • Wis. Stats. 120.12(3)

"The Other Funds" - WASBO Acct Conference March 2014

fund 803
Fund 80

Community Service Fund

  • Access to activities cannot be limited to pupils enrolled in the district’s K-12 education programs
  • Excluded are any academic subjects and extra-curricular activities available only to pupils enrolled in the district

"The Other Funds" - WASBO Acct Conference March 2014

fund 804
Fund 80

Community Service Fund

  • Examples:
    • Community softball leagues
    • Elderly nutrition programs
    • Non-Special Educ pre-school
    • Day care services
    • Evening community swimming and pool operations
    • Adult education

"The Other Funds" - WASBO Acct Conference March 2014

fund 805
Fund 80

Allowable Expenditures

  • Non-instructional
    • May include cost allocations for salaries, benefits, purchased services, etc.
    • Directly related to the activity included in Fund 80

"The Other Funds" - WASBO Acct Conference March 2014

fund 806
Fund 80

Questions to Ask

  • Is the program outside the usual instructional program?
  • Is the program available to everyone in the community (age appropriate)?
  • Is the program fee supported?

If “YES,” then the program may be appropriately included in the Community Service Fund

"The Other Funds" - WASBO Acct Conference March 2014

fund 807
Fund 80

Do NOT recommend including

  • District/Building administration
  • Facilities used by the instructional or extra-curricular program
  • Welfare/safety expenditures related to K-12 instructional or extra-curricular program
    • Police Liaison Officers
    • Crossing Guards

"The Other Funds" - WASBO Acct Conference March 2014

fund 808
Fund 80

Pro-rating of other costs

  • We do not recommend costing these costs in Fund 80 UNLESS they are directly associated and fully documented:
    • Custodial costs
    • Security costs
    • Utility costs

"The Other Funds" - WASBO Acct Conference March 2014

fund 809
Fund 80

Key Question to Ask

  • If the program in Fund 80 ended, would some costs shift to Fund 10?
    • Custodial costs: If Fund 80 program ended, would there be a reduction in custodial hours?
      • If YES, then appropriate for Fund 80.
    • Utilities: Would utilities be reduced if the program ended, or shifted to Fund 10?
      • If REDUCED, then appropriate for Fund 80.

"The Other Funds" - WASBO Acct Conference March 2014

fund 8010
Fund 80

Construction and Debt Service

  • Recommend not charging construction or related debt service costs for education facilities even if it may be used by the community
    • Exception: facility is not used for instructional purposes at all, only for community recreation.

"The Other Funds" - WASBO Acct Conference March 2014

fund 8011
Fund 80

Infrastructure Costs

  • Recommend that construction and/or infrastructure maintenance costs not be accounted for in Community Service Fund even if used at times by the community
  • Examples
    • Sidewalks
    • Parking Lots

"The Other Funds" - WASBO Acct Conference March 2014

fund 8012
Fund 80

More information:

  • Community Service Fund Information webpage http://sfs.dpi.wi.gov/sfs_comm_serv
  • Community Service Fund presentation

http://sfs.dpi.wi.gov/files/sfs/ppt/comm_ser_fnd.ppt

"The Other Funds" - WASBO Acct Conference March 2014

fund 90
Fund 90

Package and Cooperative Program Fund

  • Used to account for expenditures made by a host district for programs and services offered to other districts
    • Fund 91: Through a CESA
    • Fund 99: Others

"The Other Funds" - WASBO Acct Conference March 2014

fund 91
Fund 91

Host District

  • CESA acts as fiscal agent for the districts in the cooperative
    • Other districts pay CESA their share
    • Host district pays CESA for its share
      • Expenditure to F-10
    • CESA reimburses host district for all program expenditures
    • No fund balance allowed

"The Other Funds" - WASBO Acct Conference March 2014

fund 99
Fund 99

Fiscal Agent District

  • District that acts as the fiscal agent for the districts in the cooperative
    • Other districts pay host district their share
    • Host district transfers from F-10 its share of costs
      • Revenue to F-99
      • Expenditure to F-10
    • Pays all expenditures for program
    • No fund balance allowed

"The Other Funds" - WASBO Acct Conference March 2014

fund 991
Fund 99

Examples of Cooperative Services

  • Hockey Co-op
  • Swim Team Co-op
  • Transportation Services
  • Business Education Program
  • REQUIRES completion of a “66:30 Agreement”

Wis. Stats. 66.0301

"The Other Funds" - WASBO Acct Conference March 2014

fund 901
Fund 90

Package & Cooperative Services

  • NOTE: Shared Special Education services are recorded in F-27 not in F-90.

"The Other Funds" - WASBO Acct Conference March 2014

fund 902
Fund 90

More information:

  • Cooperative Service Agreement 66.0301 webpage

http://sfs.dpi.wi.gov/sfs_coop_agree

"The Other Funds" - WASBO Acct Conference March 2014

thank you
THANK YOU!

Questions?

Contact Information

  • Bruce Anderson, Consultant 608-267-9707
  • Carey Bradley, Consultant 608-267-3752
  • Karen Kucharz, Consultant 608-266-3464
  • Brian Kahl, Auditor 608-266-3862
  • Gene Fornecker, Auditor 608-267-7882
  • Michele Gundrum, Auditor 608-267-9218
  • Erin Fath, Asst Director 608-267-9209
  • Bob Soldner, Director 608-266-6968

"The Other Funds" - WASBO Acct Conference March 2014