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DPI UPDATE – Spring Finance Workshop

DPI UPDATE – Spring Finance Workshop

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DPI UPDATE – Spring Finance Workshop

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  1. DPI UPDATE – Spring Finance Workshop Updates: Education Jobs Fund Fund Balance Changes Budget Proposal Effects Special Education PI-1500 Contact Report Common School Fund Membership Issues Auditing Issues – Membership and Financial Audits

  2. DPI School Finance Team • Jerry Landmark, Director • Debbie Brown, Assistant Director • Brad Adams, Consultant • Bob Avery, Consultant • Marta Skwarczek, Consultant • Paul Dix, Ed Jobs Consultant • Gene Fornecker, Auditor • Kathryn Guralski, Auditor • Natalie Rew, Auditor • Michele Tessner, Special Ed. Accountant

  3. Education Jobs Act Paul Dix Ed Jobs Consultant

  4. ED. JOBS INFORMATION • $179 million to local districts to retain, recall, rehire and to hire new employees. • The current expenditure period ends March 31 and the claim deadline is April, 2011. • Can districts supplant funds? Yes! Supplanting is discouraged but there is not a prohibition. • DOA is accepting and processing the claims. • Coding documentation will need to be available for the independent auditor and a possible DOA audit. • Districts will need the project codes to be reflected in the general ledger and be able to run a report by project code for your auditor at year end. Code 595

  5. Fund Balance Changes Gene Fornecker School Finance Auditor

  6. Nature of the Change • GASB 54 shifted the way Fund Balances are being classified… • Old method focused on the ability of resources to be appropriated • GASB 54 identifies the constraints on how resources can be spent and the sources of those constraints

  7. New Fund Balance Classifications • Nonspendable • Spendable • Restricted • Committed • Assigned • Unassigned

  8. Conversion at a glance

  9. Restatement of prior year balances • GASB 54 requires the following: • Reclassify fund balance for all prior periods presented in financial statements • Changes to fund balance information in the statistical section may be made prospectively, although retroactive application is encouraged • Changes in fund structure should be reflected through restatement of beginning fund balance • Software vendors will be sending out updates to accounting software to accommodate the changes

  10. WUFAR account codes • 935000 Nonspendable fund balance • 936000 Restricted fund balance • 937000 Committed fund balance • 938000 Assigned fund balance • 939000 Unassigned fund balance • For detailed account codes refer to WUFAR at: •

  11. Revenue Limit, Carry-Over, General Aids, and Aid Payment Bob Avery & Marta Skwarczek School Finance Consultants

  12. Changes to the Revenue LimitThe Governor’s 2011-2013 Biennial Budget Proposal • Changed • Per Pupil Change (Line 5A) • Low Revenue Floor (Line 5B) • Hold Harmless (Line 7B) • New Exemptions (Lines 10D-F) • Did Not Change • Transfer of Service/Transfer of Territory (Lines 8B-C) • Federal Impact Aid Loss (Line 8D) • Recurring & Non-Recurring Referenda Lines 8E & 10A) • Declining Enrollment (Line 10B) • Energy Efficiency (Line 10C) • Uncertain • Prior Year Carry-Over (Line 8A)

  13. Changed • Per Pupil Amount • 2008-2009: +$274.68 • 2009-2010: +$200.00 • 2010-2011: +$200.00 • 2011-2012 current law: +$275.00 • 2011-2012 Proposed: -5.5% • Actual dollar amount will vary by district

  14. Changed • Low Revenue Floor • 2010-2011: $9,000 • 2011-2012 (current law): $9,800 • 2011-2012 (proposed): $8,900

  15. Changed • Hold Harmless • Ensure that Line 7 was not less than Line 1 • Gone for 2011-12 • To ensure that the 5.5% reduction in the revenue limit applies, the hold harmless had to be repealed.

  16. Changed • New Exemptions Scheduled to be Included Starting in 2011-2012 • Security Exemption • Nurses Exemption • Transportation Exemption

  17. Unchanged • Transfer of Service/Transfer of Territory (Lines 8B-C) • Can be either positive or negative (enter the “-” sign if negative • Federal Impact Aid Loss (Line 8D) • Recurring & Non-Recurring Referenda Lines 8E & 10A) • Be sure to report any new debt • Declining Enrollment (Line 10B) • Stays at 100% • Energy Efficiency (Line 10C) • Reminder – you must expend all that you are levying for or face a penalty in the next year.

  18. Uncertain • Prior Year Carry-Over • At this time, AB 40 and SB 26 include a provision (§2597) to repeal the carry-over provision allowed in WI Stats. §121.91(4)(d). • The summary of the bills, as well as other published information related to the Governor’s proposal, does not include this provision. • After discussing this with the Department of Administration, DPI believes that this provision was included en errata (by mistake). As such, it is expected that it will be deleted from the bill before passage and the carry-over provision will remain in place. • However… it is possible that prior year carry-over will not be allowed in 2011-2012. Districts should be aware of the potential impact of this if it comes to be.

  19. Changes to the General AidThe Governor’s 2011-2013 Biennial Budget Proposal • Changed • General Aid Allocation • Hold Harmless • Did Not Change • Distribution Mechanism

  20. Changes to the General Aid • 2011-12 General School Aids • Down $392M (8.4%) in 2011-2012 from 2010-2011

  21. Changes to General Aid • Hold Harmless • 2010-2011 (current law) = 85% of previous year’s aid amount • 2011-2012 (proposed) = 90% of previous year • 2012-13 (proposed) = 85% of previous year

  22. Did Not Change

  23. Final Aid Payments

  24. Delayed Aid Payment

  25. Special Education Update Michele Tessner, School Finance Accountant

  26. State Spec Ed Annual Report • Due Date • The PI-1505-SE Special Education Annual Report will be due at the same time as the PI-1505 SAFR Full Annual. • The Special Ed Annual will still need to be completed before the SAFR Full Annual because of edits built into the SAFR Full Annual that will prevent submission until completed. • Your overall expenditures in fund 27 in both reports must match • New edit for Act 221

  27. State Spec Ed Annual Report • Grant Payments In and Out (GPI and GPO) • Communication is Key!!! • If payments are made using grant money related to special education, notify the other district, CESA or CCDEB that the funds are grant money. • All payments relating to special education activities that are paid with grant funds should be recorded as GPO and GPI. This includes items that may not be aidable.

  28. State Spec Ed Annual Report • Grant Payments In and Out (GPI and GPO) • GPI and GPO should be recorded in the year the original expense was incurred. The entity will then be able to correctly identify the expense on the Grant Payment Received Expenditure Breakdown addendum.

  29. Wisconsin Act 221 • For some functions, only a certain percentage of SALARY and BENEFIT costs of professional level staff are eligible to be included as special education categorical aid (project 011). This calculation also takes grant money into consideration. If positions are also grant funded, the entire percentage may not be allowable.

  30. State Spec Ed Annual Report • Wisconsin Act 221 • Salary and benefit amounts of those professional level staff are entered by each entity on the online Wisconsin Act 221 addendum. • Salary and benefits for all funds, not just fund 27. • Do not include contracted services (including with CESA’s), supplies, travel or para-professional expenses.

  31. State Spec Ed Annual Report • Wisconsin Act 221 • New Error in the Special Education Annual: • Project 011 vs Calculated Addendum Amount • Amount recorded in that function in project 011 exceeds the maximum allowable based on the numbers entered on the WI Act 221 addendum. Will not be able to submit Special Ed Annual report with this error. • New Error in the SAFR Full Annual: • Total on addendum exceeds total salaries and benefits in SAFR • The total amount recorded in that function on the WI Act 221 Addendum exceeds the total amount of salaries and benefits recorded in the SAFR full annual for that function. • Will not be able to submit SAFR Full Annual report with this error.

  32. State Spec Ed Annual Report • Wisconsin Act 221 • New Financial Data Report in Special Ed Annual • Each function is on a separate page • Top part show information that has been entered into the Enter/Edit screen and the WI Act 221 Addendum • Bottom section is the WI Act 221 calculation • If you are in a package program, your calculation will not be accurate. • On the pages following the Act 221 calculations, there is a report that shows your total salary and benefits for each function in the SAFR Full Annual.

  33. State Spec Ed Categorical Aid • Open Enrollment • Grant money may not be used for flat rate open enrollment. • Grant money may be used for the additional tuition costs. • If grant money is used for the additional amount, it may be a deductible receipt if original expense in the serving district is charged to State Categorical aid (project 011).

  34. Federal Medicaid Revenue from CESAs • 2011-2012 Reporting • Source 581 – Medicaid Reimbursements from CESA • Use this starting with the 2011-2012 SAFR budget report. • Source 780 should still be used if revenue is received directly from the Department of Health Services.

  35. PI-1500 Contacts Report Brad Adams School Finance Consultant

  36. PI 1500 • Purposes • Provide finance team with district staff contacts for information • Provide finance team with specific district staff authorized to file specific reports on behalf of the district • Security

  37. PI 1500 • Steps to complete report • The authorized contact for the PI 1500 enters the report. • Names are entered to create users. • Users are associated with various reports. • Submit to DPI. • Give ID/Password to new user.

  38. PI 1500 • PI 1500 will need to be amended when staff assignments and responsibilities change • Need your User ID and Password • Preparation – Have list of district staff with e-mail addresses and telephone numbers • Contact a school finance consultant should you need additional assistance

  39. From the finance team homepage: PI 1500 Contacts Report May 21, 2011

  40. You need authorization from the district – use ID/Password Forgot password? No problem – have a new one emailed to your account.

  41. After logging in – You can go directly into the Reporting Portal or – if authorized - contacts list. If properly logged in – ID will be shown. You can change your existing password here.

  42. Once in – if authorized - you can go directly into the contacts list. Consider having at least 2 individuals with the authority to go into this report. Steve Steve Barb Barb

  43. No need to go through each and every page – you can jump to a category in the Report Assignment link

  44. In each category, every possible contact will be listed. Use the appropriate checkbox to give the individual the authority to do the report, or to list them as a contact for receiving information.

  45. When staffing changes, the contacts Report must be amended to reflect the change. Delete contacts who are no longer expected to work with the district. Edit existing contacts if information changes, such as position, phone or email address.

  46. Notice that the user id will not show up until the “Authorized Contact” checkbox is checked. A temporary password will be generated which the user can change at any time. Until it is changed, the password will be viewable on this screen. Give the id/password to any new users.

  47. Common School Fund Brad Adams School Finance Consultant

  48. Common School Fund - Finance Team Timeline June 30 – Districts obtain census information which is used in following year for calculation of Library Aid. Census numbers are due in August. January - The Board of Commissioners of Public Lands (BCPL) informs the Department of Public Instruction (DPI) of the estimated interest that will accumulated in the Common School Income Fund by April 15th. $27.29 per census. This is a fairly good estimate. April – The BCPL informs the DPI of the actual total interest that has accumulated in the Common School Income Fund. Calculate actual aid available per census. May 1st– Library Aid payment made to districts. Funds to be spent during current fiscal year. Not doing so could cause the district to lose this aid.

  49. Transfer of Service Brad Adams School Finance Consultant