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SPRING FINANCE WORKSHOP Welcome

SPRING FINANCE WORKSHOP Welcome. APRIL, 2007. Agenda. 9:00-9:20 Introduction & Works in Progress 9:20-10:30 What’s New 10:30-10:45 Break 10:45-11:30 Accounting Issues 11:30-12:00 Needing Further Review. Oops!.

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SPRING FINANCE WORKSHOP Welcome

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  1. SPRING FINANCE WORKSHOPWelcome APRIL, 2007

  2. Agenda • 9:00-9:20 Introduction & Works in Progress • 9:20-10:30 What’s New • 10:30-10:45 Break • 10:45-11:30 Accounting Issues • 11:30-12:00 Needing Further Review

  3. Oops! “As of tomorrow, employees will only be able to access the building using individual security cards. Pictures will be taken next Wednesday and employees will receive their cards in two weeks.” (Microsoft Corp.)

  4. Introductions School Financial Services Team The mission of the Department of Public Instruction's School Financial Services Team is to lead, advise and consult with school districts, government entities, citizens, and professional organizations on school financial issues.

  5. Introductions School Financial Services Team The team is comprised of individuals with diverse, specialized education and professional experience in public school finance and management services, governmental accounting and auditing, data management systems, and relevant state and federal policies and legislative processes.

  6. Finance Team….Who We Are

  7. Works in Progress “We know communication is a problem, but the company is not going to discuss it with the employees.” (AT&T Long Lines Division)

  8. WORKS IN PROGRESS Equalization Aid Calculation Re-design Purpose: Improve the internal work processes and tools of the team Additional analysis for districts Re-design to run in parallel with current process for October 15, 2007 aid run

  9. WORKS IN PROGRESS Special Ed Report in SAFR • Purpose: Improve the special education aid payment process including - Collection of data, auditing of data, and aid calculation and aid payments Production goal is the 2008-09 SPED Budget Report

  10. WORKS IN PROGRESS Transfer of Service On-line Purpose: Improve the collection and processing of Revenue Limit TOS Claims Use current process for 2007-08 claims New process for 2008-09 claims

  11. WORKS IN PROGRESS OPEB Wizard Purpose: A teaching and decision making tool for districts to use to understand and act upon the district’s OPEB liability Tentative availability: summer of 2007

  12. WORKS IN PROGRESS Status and Deadlines Update Congratulations to districts with 100% on time reporting for 2006-2007! Handout: report schedule for 2007-2008

  13. WORKS IN PROGRESS Status and Deadlines Update Due date changes: PI 1547 Transportation report from August 1 to ? PI 1505 Calendar from August 1 to ? Due date changes to begin with the collection of 2007-08 data

  14. WORKS IN PROGRESS • Wisconsin’s Longitudinal Data System (LDS) Longitudinal data to support education decisions

  15. Overall Goal of Wisconsin’s LDS: Provide cost-effective, integrated educational information, reporting, and analysis at the district, school, classroom, and student level to support local decision- making.

  16. Wisconsin LDS Activities: • Build data warehouse that integrates existing data collections & repositories with increased analytical capability, especially on a longitudinal basis • Deliver web-based tools and reports that allow for “anytime, anywhere” access to analytical data

  17. Short-Term LDS Objectives: • Engage prospective users in discussions about desired system features & functionality • Plan for system rollout and user professional development • Manage individual student data for NCLB compliance • Plan for sustainability

  18. The LDS team would like feedback Contact Information Paul Sandrock, 608-266-3079 s.paul.sandrock@dpi.state.wi.us John Calderone, 608-267-2272 john.calderone@dpi.state.wi.us

  19. WORKS IN PROGRESS Future Spring Finance Workshops The finance team posted the 2006 spring finance presentations as webcast presentations

  20. WORKS IN PROGRESS Future Spring Finance Workshops The finance team is considering hosting the 2008 workshop as a webcast only or in combination with fewer CESA on site presentations

  21. WORKS IN PROGRESS Future Spring Finance Workshops Advantages: time and travel savings; potential additional expanded presentations Disadvantages: personal contact, time for questions Your thoughts?

  22. What’s New Right Now “This project is so important, we can’t let things that are more important interfere with it.” (Advertising Manager, UPS)

  23. WHAT’S NEW RIGHT NOW • Equalization Aid Analysis Tools • Purpose: help districts understand equalization aid eligibility • Information found under “ District Budget Development and Planning” ..if we knew what it was we were doing, it wouldn’t be called research, would it?” –Albert Einstein

  24. WHAT’S NEW RIGHT NOW Aid & Revenue Limit FTE Reports Purpose: communicate and ensure that district membership used in the aid and revenue limit calculations are accurate

  25. WHAT’S NEW RIGHT NOW Aid & Revenue Limit FTE Reports Fall of 2006 – District’s SAFR home page included a membership calculation for the district to use in developing the 2006-07 revenue limit

  26. WHAT’S NEW RIGHT NOW Aid & Revenue Limit FTE Reports Spring of 2007 -District’s SAFR home page now includes an equalization aid membership calculation Districts are encouraged to review these calculations and contact the finance team with questions

  27. WHAT’S NEW RIGHT NOW Shared Cost Modification (sort of) Second and final year of this law Resources: Click on “Webcast Presentations” on team’s website and “District Budget Development and Planning” District submits data on the PI 1505 AC report and verified by auditors on the PI 1506 AC

  28. Shared Cost Modification:What should you do? • Determine your district’s position in the aid formula. • If applicable, pass a School Board resolution prior to June 30, 2007. (You do need a resolution for 2006-07 even if you passed one for 2005-06.) • Determine the estimated amount to be paid to WRS in 2006-07 (Actual payments to WRS or debt principle and interest payments are eligible. Cost of miscellaneous fees – i.e. bank service fees – not eligible.) • Enter the amount in the School Finance Reporting Portal – “WRS Shared Cost Report.”25

  29. Shared Cost Modification: What should you do? • Ensure that the WRS Shared Cost Report and 06-07 Budget Report reflect what actually will happen by 6/30/07. • The 06-07 Budget Report will be used for the July 1 aid estimate. The SFS team will adjust your district’s shared cost at the time of the aid run. • Do not remove anything from your ledger!

  30. Shared Cost Modification: What should you do? • On the 2006-07 PI 1505 AC report, in late summer, report your district’s actual WRS payment. • Provide your district’s auditor with all documentation, including the board resolution. • The Auditor will verify WRS payments on the PI 1506 AC. • The SFS team will adjust your district’s shared cost at the time of the aid run.

  31. Equalization Aid “What I need is a list of specific unknown problems we will encounter” (Lykes Lines Shipping)

  32. Equalization Aid Why do you need to know how to calculate aid when DPI calculates it for you? • Because you will be asked by your board members, constituents and the media • So you can make sure it’s accurate and, if it changes, figure out why • Because you may want to do estimates and “what ifs”…

  33. Equalization Aid – How It Works Congratulations, it’s your lucky day!YOU ARE ELIGIBLE FOR UP TO $10,000 IN COLLEGE SCHOLARSHIP MONEY!!!(Not really. We’ll eventually connect thisfake give-away to Equalization Aid.)

  34. Equalization Aid – How It Works 20% 50% 80% 50%

  35. How Did the College “Share” in the Tuition? What you could pay. $10,000 amount. Compare, then Compute actual scholarship amount.

  36. Equalization Aid Formula • State “Shares” in District Cost • Aid is Based on a District’s Ability to Pay, as Measured by Property Wealth per Member (value per member) Basic premise: The more property wealth per member a district has, the less state aid it will receive.

  37. How Does the State “Share”in District Costs? District Value Per Member State Guaranteed Value Per Member Compare, then Compute Equalized Aid

  38. 3 District Factors 1. Costs (“Shared Cost”) 2. Wealth/Property Taxbase 3. Pupils (“Membership”) * * * All Prior-Year Data (2005-06 data is used for 2006-07 aid.)

  39. 1. District Factor - Costs(prior year) Total General Fund (Fund 10) Expendituresplus (+)Total Debt Service Funds (Funds 38 & 39) Expendituresminus (-)all local misc. revenue, grant revenue,and categorical aid (called deductible receipts). Known as “Shared Cost”

  40. 2. District Factor - Wealth/Taxbase(prior year) Property Taxbase is Used to Determine Wealth and Ability to Support District Expenditures Uses Equalized Valuation or Fair Market Value (NOT Assessed Value)

  41. 3. District Factor - Membership(prior year) Average of 3rd Friday F.T.E. - September 2nd Friday F.T.E. - January plus (+) F.T.E. Summer School F.T.E. = full-time equivalent 2 halftime (.50) kdg students = 1 F.T.E. Summer School = 48,600 minutes = 1 F.T.E. (2006-07 aid uses September 2005, January 2006, and Summer 2005 numbers)

  42. Membership Who can you count for aid membership? Generally, residents for which you are financially responsible - i.e. you are paying for the student’s education. - Start with count of students in your seats. - Add in your residents who are elsewhere (and for which you are financially responsible). - Subtract non-residents being educated in your seats. (Double-check tuition waiver situations and watch age limits.)

  43. Membership Aid membership also includes: - Youth Challenge Students - Part-time Attendance F.T.E. of Private/Home-Schooled Students - Foster Group Home Students See: http://www.dpi.state.wi.us/sfs/membrpt2.html

  44. Value Per Member Crucial Statistic Value per Member = Total Equalized Value ÷ Membership

  45. Equalization Aid – 3 Levels District Value per Member Positive Tertiary Aid Negative Tertiary Aid 50% 50% 17% 83% Negative Secondary Aid Positive Secondary Aid 10% 90% Positive Primary Aid No Aid

  46. Equalization Aid – 3 Levels Positive Tertiary Aid Negative Tertiary Aid Negative Secondary Aid Positive Secondary Aid Positive Primary Aid No Aid

  47. Equalization Aid So, how does this work for my district? Percentage Method on the Website http://www.dpi.wi.gov/sfs/index.html Under: Budget Development and Planning

  48. Equalization Aid How can I determine where I am in the aid formula? Aid Formula Position on the Website http://www.dpi.wi.gov/sfs/index.html Under: Budget Development and Planning

  49. Equalization Aid Explaining Changes Across Time How can I explain changes in my district’s aid? 7-Year History on the Website http://www.dpi.wi.gov/sfs/index.html Under: Budget Development and Planning

  50. Equalization Aid How can I figure an aid estimate for 07-08? Simplified Percentage Method of Estimating Equalization Aid http://www.dpi.wi.gov/sfs/index.html NORMALLY Under: Worksheets/Executable Budget Development and Planning

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