SCHOOL FINANCIAL SERVICES UPDATE

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Slide1

SCHOOL FINANCIAL SERVICES UPDATE

Paul StoneMike Dooley, CSBORamona GarnerDaniel Lunghofer, MPAApril 25, 2014

2014 Annual Conference

1

Slide2

Paul Stone

School District Accounting Supervisor(360) 725-6306paul.stone@k12.wa.usACCOUNTING MANUAL UPDATESFY 2013–14FY 2014–15

2014 Annual Conference

2

Slide3

A Second Addendum to

Bulletin No. 006-13 is in process at OSPI. It will be available on the OSPI website when completed.The State Auditors Office (SAO) changed their auditing practices.GASB Statements 63 and 65 changed the GAAP standard layout for financial statements.The conventional accounting practices for Deposit Arrangements with ESDs for Employee Compensated Absences have been radically modified.

2014 Annual Conference

The Second Addendum to the 2013–14 Accounting Manual

3

Slide4

Previously, SAO was able to provide an opinion on financial statements based solely on presentation in accordance with an Other Comprehensive Basis of Accounting (SDAM and F-196).Only districts filing Comprehensive Annual Financial Report (CAFR) were audited to GAAP.

2014 Annual Conference4SAO Dual-Opinion Reporting

2013–14 SDAM Addendum

Slide5

AICPA peer review of SAO auditing practices.New SAO “dual-opinion” audits.

Financial Statements compared against two different standards.OCBOA presentation based on statutory guidance (SDAM and F-196.)GAAP presentation based on governmental accounting standards.2014 Annual ConferenceSAO Dual-Opinion Reporting

2013–14 SDAM Addendum

5

Slide6

Timing impact: As GASB Standards become effective, the SAO audits to the new rules.Guidance originally prepared for inclusion in the

SDAM for the 2014–15 fiscal year has been moved up and becomes effective in the current fiscal year.2014 Annual Conference6

SAO Dual-Opinion Reporting

2013–14 SDAM Addendum

Slide7

GASB Concepts Statement 4 introduced idea of “net position” and inflows/outflows of resources

.GASB Statements 63 and 65 changed the GAAP standard layout for financial statements as a result.We are changing the balance sheet to conform to these new principles.FY 2013–14 Balance Sheet Changes

2014 Annual Conference

7

Slide8

Inflows/Outflows of ResourcesNew focus is on the flows of resources:Inflows

of resources: acquisition of net assets.Outflows of resources: consumption of net assets.Net assets: Assets over liabilities.Additional focus on applicable period:If flow of resources applies to a future period, considered “Deferred Inflows/Outflows of Resources.”2014 Annual Conference

FY 2013–14

Accounting Manual Updates

8

Slide9

Deferred Revenue is no longer used.

General Ledger Changes (2013–14)GL 750: Unavailable Revenue.GL 760: Unavailable Revenue—Taxes Receivable.These are no longer considered liability accounts.2014 Annual Conference

FY 2013–14 Addendum

Deferred Inflows of Resources

9

Slide10

2014 Annual Conference

FY 2013–14 Deferred Inflows of Resources

10

Slide11

LIABILITIES

Accounts Payable

$ 440,879.24

Payroll Deductions and Taxes Payable

$ 1,761.93

Due

To

Other Governmental Units

$ 291,330.40

Estimated Employee Benefits Payable

$ 1,620,037.46

Due To Other Funds

$ 27,127.64

TOTAL LIABILITIES

$ 2,381,136.67

DEFERRED INFLOWS OF RESOURCES

Unavailable Revenue—Taxes Receivable

$

9,940,581.43

TOTAL DEFERRED INFLOWS OF RESOURCES

$ 9,940,581.43

FUND BALANCE

Nonspendable Fund Balance

$ 400,000.00

Restricted Fund Balance

$ 3,586,808.53

Committed Fund Balance

$ 7,000,000.00

Assigned Fund Balance

$ 17,799,336.50

Unassigned Fund Balance

$ -

TOTAL FUND BALANCE

$ 28,786,145.03

TOTAL LIAB+DIR+FB

$ 41,107,863.13

2014 Annual Conference

FY 2013–14

Deferred Inflows of Resources

11

Slide12

Fiduciary Fund: General Ledger Changes (2013–14)

GL 856: Held in Trust for Pensions and Other Employment Benefits. (PTF)GL 857: Held in Trust for Private Purposes. (PPTF)Fiduciary Fund year-end entries should close to these accounts.Balances in GL 889 should be JV’d to the appropriate account.

2014 Annual Conference

FY 2013–14 Addendum

Fiduciary

Funds

12

Slide13

 

Current F-196 Guidance in

the ABFR

New GASB 63 Standard

Change in the Fund title:

Statement of Fiduciary Net Assets

Statement of Fiduciary Net Position

Change in the description of the title for the Fund Balance:

NET ASSETS

NET POSITION

Change in the specific GL Fund Balance trust account:

Assigned to Fund Purposes

HELD IN TRUST FOR (reason)

Change in the description of the total Fund Balance:

TOTAL NET ASSETS

TOTAL NET POSITION

Change in the title for the Statement of Changes:

Statement of Changes in Fiduciary Net Assets

Statement of Changes in Fiduciary Net Position

Change in description of Beginning Net:

Net

Assets—Beginning

Net

Position—Beginning

Change in description of Ending Net:

Net

Assets—Ending

Net

Position—Ending

2014 Annual Conference

13

FY 2013–14 Fiduciary Fund

F-196 Changes

Slide14

Per GASB 10 and SAO: Deposit arrangements for compensated absences

are not risk pools.Assets held by the ESDs on behalf of the districts are still the property of the school districts and balances should be reported on financial statements.The current practice of recording the periodic payments to the ESD as expenditures for compensated absences is not correct.

2014 Annual Conference

FY 2013–14 Deposit Arrangements

with ESDs for Compensated Absences

14

Slide15

Guidance applies only to districts that are members of their ESD’s Compensated Absence Pool.Periodic deposits are not considered expenditures because GAAP dictates there is no liability until you have a change in the current financial resources.

Under the current practice, employees have not taken sick leave, districts are setting aside funds in anticipation.2014 Annual ConferenceFY 2013–14

Deposit Arrangements with ESDs for Compensated Absences

15

Slide16

An adjusting entry is required to recognize the district’s pool balance as an asset as of August 31, 2013.

2014 Annual ConferenceFY 2013–14 Accounting Treatment for Compensated Absences

Initial Recognition of Asset on Financial Statements

General Ledger Account

Sub- Ledger Acct code

Account Title

Applicable Fund

Debit

Credit

451

Investments/Cash with Trustee

GF

XX

 

898

 

Prior Period Restatement

GF

 

XX

Initial Entry: To record balance held by ESD for SD Compensated Absences. Recognize asset as a Prior Period Adjustment.

16

Slide17

Current year adjusting entry required.Periodic expenditures previously recorded should be credited. The debit is an increase in GL 451 Investment/Cash with Trustee.

2014 Annual ConferenceFY 2013–14 Accounting Treatment for Compensated Absences

Adjusting Entry for periodic expenditures previously recorded

General Ledger Account

Sub- Ledger Acct code

Account Title

Applicable Fund

Debit

Credit

451

Investments/Cash with Trustee

GF

XX

 

530

Y

Expenditures (Sick Leave Cashout)

GF

 

XX

17

Slide18

New accounting procedure for future periodic payments for Compensated Absence amounts sent to the ESD and held in reserve.

2014 Annual ConferenceFY 2013–14 Accounting Treatment

for Compensated Absences

Monthly payroll benefit assessments for Compensated Absences

451

Investments/Cash with Trustee

GF

XX

 

241

 

Warrants Outstanding

GF

 

XX

Record the monthly Compensated Absence assessment as an increase in

Investment/Cash

with Trustee. Payments to ESDs.

18

Slide19

Two distinct types of expenditure claims.Annual

Compensated Absence buy-back elections.Compensated Absence cash-outs upon termination.OMB Cost Circular A-87 does not allow termination payments for unused leave to be directly charged to Federal programs. These costs may only be indirectly charged to Federal programs.

Fringe benefit rates charged to federal programs are being questioned by SAO as unallowable. OSPI and the ESDs are working with SAO on this issue, stayed tuned.

2014 Annual Conference

FY

2013–14

Deposit Arrangements

with ESDs for Compensated

Absences

19

Slide20

2014 Annual Conference

FY 2013–14 Accounting Treatment for Compensated AbsencesRecognition of the expenditure occurs when there is a change in the current financial resources.

20

Recognition of the expense for Compensated Absence cash out or buy back

530

Y

Expenditure (Compensated

Absence Buyback/Cashout)

GF

XX

 

241

 

Warrants Outstanding

GF

 

XX

To record the employee claim for compensated

absences. Payment

made to employee OR former employee.

Termination

payments for Compensated Absences

can

not be directly charged to Federal Programs.

Slide21

The new procedure to record the reimbursement of funds from the ESD.

2014 Annual Conference21FY 2013–14 Accounting Treatment for Compensated Absences

ESD reimburses District for the claim; this reduces Investment/Cash with Trustee

.

240

C

ash

GF

XX

 

451

Investments/Cash with Trustee

GF

 

XX

To record reimbursement from ESD for Compensated Absence claim. This reduces the Investment/Cash with Trustee.

Slide22

The district’s balance in the pool is reflected both as an asset, as well as in the appropriate GL account for the ending fund balance.

Use GL 888, Assigned to Other Purposes: if there is no formal action or language in the agreement. Use GL 870, Committed for Other Purposes: for pool balances committed by formal Board action.Use GL 831, Restricted for Compensated Absences: If the written agreement with the ESD explicitly states pool funds may only be used for compensated absences. At this time, there is no evidence any pools are restricted.

2014 Annual Conference

FY

2013–14 Accounting Treatment

for Compensated Absences

22

Slide23

2014 Annual Conference

23FY 2013–14 Accounting Treatment for Compensated Absences

Year 1: YEAR END CLOSING ENTRY TO ADJUST ACCOUNTS. (Assigned assumption)

890

 

Unassigned Fund Balance

GF

XX

 

888

 

Assigned to Other Purposes

GF

 

XX

To recognize the Assigned, Compensated Absences Fund Balance. Corresponds to amount held in GL 451 for purpose.

 

 

 

 

 

 

FY X+1 YEAR END CLOSING ENTRY TO ADJUST ACCOUNTS. (Assigned assumption)

890

 

Unassigned Fund Balance

GF

XX

XX

888

 

Assigned to Other Purposes

GF

XX

XX

To adjust Assigned Compensated Absences Fund Balance to actual amount recorded in GL 451, Investment/Cash with Trustee asset account.

Slide24

New GL 660: Unearned Revenue.

This account is for recording money that the district has received, but has not yet earned. It is a liability because receipt of the money is contingent upon the district performing some service.Example: a parent pre-pays full-day kindergarten tuition in August. The district records it as unearned revenue.2014 Annual Conference

Other Items in 2013–14Addendum

24

Slide25

2014 Annual Conference

FY 2014–15 Accounting Manual Revisions25Are we having fun yet?

Slide26

The Accounting Manual is published cooperatively by OSPI and SAO.

The School District Accounting Advisory Committee (SDAAC) makes recommendations for updates to the manual in their role of advising on accounting, budgeting, financial reporting, and related matters.SDAAC meetings are scheduled now through December 2014 for the 2015-2016 Accounting Manual updates.The SDAAC web page:http://www.k12.wa.us/safs/PUB/COM/SDAAC.asp.

Has the complete description of changes to the 2014-2015 manual.

Has meeting agendas, materials, list of committee members, etc.

FY 2014–15

Accounting Manual Updates

2014 Annual Conference

26

Slide27

New Program 03 Basic Education–Dropout Reengagement, has been added.New Activity 33 Curriculum, has been added.Inventory is allowable in the Capital Projects Fund (CPF).

We have revised to/from transportation accounting on the long form in Appendix E.Audit Frequency and Reporting Levels of Audit Recommendations are new schedules included in the new edition.2014 Annual Conference27

FY

2014–15 Accounting Manual Revisions Summary

Slide28

New Program 03 Basic Education–Dropout Reengagement opened for 2014–15.Program has same allowable activities, objects, and duty codes as Program 02

.Under ESSHB 1418, school districts must have an approved Dropout Reengagement Program to claim FTE for funding. Current list of eligible programs is on the OSPI website: http://www.k12.wa.us/GATE/SupportingStudents/StudentRetrieval.aspx.

2014 Annual Conference

28

FY 2014–15

Accounting Manual Revisions

Slide29

New Activity 33 CurriculumNo current method for capturing curriculum costs (buried in Activity 27).Legislature provides curriculum funding, no tracking of those funds.

Intended to capture the cost of developing and purchasing new curriculum.Open in all programs except 97, 98, and 992014 Annual Conference29

FY 2014–15 Accounting Manual Revisions

Slide30

New Activity 33 Curriculum (continued)Includes the following:Textbooks.

Electronic textbooks.Hands-on science kits.Sheet music.Workbooks in lieu of textbooks.Does not include most consumable items (paper, science chemicals, etc.).2014 Annual Conference30

FY

2014–15 Accounting Manual Revisions

Slide31

Inventory in the Capital Projects Fund (CPF)The way technology projects are implemented has prompted a change in the CPF account codes.

In 2014–15:GL 410 Inventory will be open in the CPF.GL 430 Prepaid Items will be closed in the CPF.GL 840 Nonspendable Fund Balance will be open in the CPF.2014 Annual Conference31

FY

2014–15 Accounting Manual Revisions

Slide32

We have re-visited to/from transportation accounting in Appendix E.The long form is now a two-part form:

Part One: Calculates the per-mile rate the district should be using.Part Two: A separate piece allowing for the calculation of non-to/from trip costs.On Line 12: “Cost of Drivers including benefits”, excluding the cost of health benefits is allowable.Health benefits are deemed a core cost of Program 99.2014 Annual Conference

32

FY 2014–15

Accounting Manual Revisions

Slide33

Audit FrequencyThe frequency with which a school district is audited by the State Auditor’s Office depends on the district size and the level of risk associated with the district. The following table outlines SAO’s audit frequency schedule for districts.

2014 Annual Conference33

FY 2014–15 Accounting Manual Revisions

Local Government

Standard Frequency

 

Accountability Audits

Financial Audits

School Districts

FTE Students ≥ 8,000

Annual

Annual

FTE Students < 8,000

Biennial/Triennial based on risk and user needs

Biennial/Triennial based on risk and user needs

FTE Students < 100 or no high school

Annual Audit Assessment

None

Slide34

Reporting Levels of Audit Recommendations

SAO utilizes the following three levels of reporting issues that arise during a financial audit:Findings formally address issues in an audit report. Districts are given the opportunity to respond to a finding, and this response, or a synopsis of it, will be published in the audit report.Management Letters communicate less significant issues of noncompliance and make recommendations for strengthening internal controls. Management letters are referenced, but are not included, in the audit report.Exit Items are less serious audit issues than a finding or management letter. These issues are informally communicated to

a district.

2014 Annual Conference

34

FY

2014–15

Accounting Manual Revisions

Slide35

2014 Annual Conference

Michael J. (Mike) Dooley, CSBOSupervisor, School District and ESD Budgeting(360) 725-6305mike.dooley@k12.wa.us

F-195 Budget Update for FY 2014-2015

35

Slide36

2014 Annual Conference

F-195 Budget Update for FY 2014-2015New items in the General Fund:In all programs, except 97, 98 and 99, new Activity

33 Curriculum was added.

Objects 0, 2, 3, 4, 5, 7, 8 and 9 are allowed.

With duty codes 001, 002, 003, 004, 005, 120, 121, 122, 130, 131, 132, 250, 251, 252, 310, 311, 312, 314, 320, 321, 322, 324, 330, 331, 332, 334, 400, 401, 402, 490, 491, 492, 494, 520, 521, 522, 610, 630 and 640 allowed in Object 2 certificated salaries, and

With duty codes 001, 002, 003, 004, 005, 900, 903, 940, 943, 960, 963, 970, 973, 980, 983, 990 and 993 allowed in Object 3 classified

salaries.

36

Slide37

2014 Annual Conference

F-195 Budget Update for FY 2014-2015New items in the General Fund:N

ew Program 03 - Basic Education – Dropout Reengagement was added.

Allowable activities are the same as in

Program

02.

Allowable objects are the same as

in

Program

02.

Allowable duty codes are the same as

in

Program 02.

Under ESSHB

1418,

districts must have an OSPI approved Dropout Reengagement Program to claim FTE for

funding.

37

Slide38

2014 Annual Conference

F-195 Budget Update for FY 2014-2015New items in the General Fund:New edit 1.155 applies to school districts that

have been approved by OSPI to claim for funding in programs under ESSHB 1418, that is Program 03:

New edit

1.156

applies to school districts that have

not

been

approved by OSPI

to

claim for funding in programs under ESSHB 1418, that is Program

03:

There are no expenditures in Program 03,

but district has approved Dropout Reengagement Program

Amount 1 = Mask 03XXX

Applies to any district listed in edit 1.155

Valid in F-195 and F-200

There are expenditures in Program 03, but district has no approved Dropout Reengagement Program

Amount 1 = Mask 03XXX

Applies to any district other than those listed in edit 1.155

Valid in F-195 and F-200

38

Slide39

One more (exciting) new item

in the General Fund:New G.L. 831 Restricted for Employee Compensated Absence is open in both the beginning and ending fund balance sections.New item in the Debt Service Fund:On page DS4 of the EDS input option, the application will now allow deletion of bond issue dates and amounts. Yeah

!!!New item in the Capitol Projects Fund:G.L. 840 Nonspendable Fund Balance – Inventory & Prepaid Items is now allowed in both the beginning and ending fund balance sections.

The term “Skills” Center has been changed to “Skill”

Center on all screen and report displays.

2014 Annual Conference

F-195 Budget Update for FY 2014-2015

39

Slide40

Budgeted Beginning Fund Balance Review:

OSPI will review each school district’s budgeted beginning fund balance after all the F-196 information is received.Current budgeted beginning fund balance will be recalculated based upon the prior year actual ending fund balance from the

F196.If the

re-calculated budgeted ending fund balance result is negative, your school district

may receive a

request from OSPI to revise its budget.

Your school board will have 30 days of receiving notice to submit a revised budget to OSPI.

2014 Annual Conference

Budgeting Reminders for FY 2014-2015

40

Slide41

Budget Extension Reminders:

All of you are busy preparing your new year budgets, but don't forget any remaining current year budget extensions.August is the final month to file your F-200 budget extensions with your ESD and OSPI.Depending on when you submitted your current year F-200 for approval and when you printed your new year F-195 budget document, you may need to reprint your new year budget to allow your current year budget extension to be accurately displayed in the middle column of your new year F-195

.

2014 Annual Conference

Budgeting Reminders for FY 2014-2015

41

Slide42

Budget Extension Reminders:

Review budget monthly to determine necessity of an extension.Must complete a budget extension prior to incurring expenditures in excess of the total appropriations as required by RCW 28A.505.150.For 1st class school districts, adopted and filed prior to incurring expenditures that exceed the appropriation in each fund. For 2nd class school districts, adopted and approved by both the ESD and OSPI prior to incurring expenditures that exceed the appropriation in each fund.

The ESD and OSPI will adjust budget extensions that do not meet this requirement.

2014 Annual Conference

Budgeting Reminders for FY 2014-2015

42

Slide43

Budget Extension Reminders:

WAC 392-138-110 requires that the Associated Student Body initially review revisions to the Associated Student Body (ASB) budget. Therefore, an extension of the ASB Fund budget should occur prior to the closing of school to secure the necessary student involvement.Check your DSF appropriation for adequate spending level for your district’s debt payment schedule.Check your TVF appropriation for adequate spending level for those too-good-to-pass-up year end close-out bus deals.

2014 Annual Conference

Budgeting Reminders for FY 2014-2015

43

Slide44

F-197 Cash File Questions and Answers:

BackgroundDuring the mid-1970s the State Legislature requested OSPI inquire into the matter of school district cash balance amounts and the factors that cause fluctuations, sometimes severe, in cash amounts throughout the school fiscal year.Initially the data collected was as recorded by the respective county treasurers, and not the records of the district. As a result, differences were found and, for the purposes of these studies, data was revised and adjusted so as to be presented on the same comparable basis.

This brought about a need for a uniform reporting mechanism. Thus beginning in 1979 and through the early 1980s all data for cash flow analysis done by OSPI for legislative reports was taken from the cash file, what we today refer to as the F-197.

2014 Annual Conference

Budgeting Reminders for FY 2014-2015

44

Slide45

F-197 Cash File Questions and Answers:

What is the purpose of the F-197?Monthly data collection mechanism required of educational service districts (ESD) by OSPI and used periodically by School Apportionment and Financial Services (SAFS) to gather select school district financial data – such as net cash, investments, and local deductible revenues – on an as needed basis.How is the F-197 data used?Used by both the F-195 and F-196 financial applications for the running of

edits to check for budgetary reasonableness and accuracy in year end reporting of a school district’s financial data.U

sed in the annual School District and Educational Service District Financial Reporting Summary.Used by SAO as

a supplemental tool as part of its fiscal year end reconciliation of the F-196 to the county treasurer

reports.

U

sed

by OSPI in helping to estimate the effects of the proposed delay in the June 30

th

apportionment payment;

used

to measure a school district’s Days Cash on Hand as one of the indicators in the financial health tool.

2014 Annual Conference

Budgeting Reminders for FY 2014-2015

45

Slide46

F-197 Cash File Questions and Answers

:Does the F-197 data need to be reconciled?All F-197 data must be entered monthly by the ESDs. Amounts entered are taken from the same source documentation supplied by the County Treasurer for each district located in its boundary.Pursuant

to RCW 28A.510.270, the County Treasurer

for each county in Washington State is designated as ex officio treasurer of the districts located in his/her county.

As

ex officio treasurer, the

County

is required to submit to

each district

a monthly report of the state of the

finances.

This

report is to be submitted not later than the seventh business day of the following month.

2014 Annual Conference

Budgeting Reminders for FY 2014-2015

46

Slide47

F-197 Cash File Questions and Answers:

Does the F-197 data need to be reconciled?In accordance with WAC 392-123-132, each district shall reconcile amounts reported by its County Treasurer with the district records for all funds.This WAC, as it is written, is directing

a district to reconcile amounts monthly with its county treasurers’ report, not the F-197.

Because the F-197 does not capture all of the county treasurers’ report information, it is not intended to be a replacement for the county treasurers’ monthly report; nor does it relieve

a district

from its monthly reconciliation of its county treasurers’

report.

The

F-197 Cash File application is intended to aide in the reconciliation between a

district’s

financial reports, i.e. F-196 [pursuant to WAC

392-123-120

], and a district’s county treasurers’ report that its county is required to submit to each of its districts monthly

.

2014 Annual Conference

Budgeting Reminders for FY 2014-2015

47

Slide48

F-197 Cash File Questions and Answers:

OSPI does encourage monthly reconciliation of school district accounts with a simulation of closing using the fund balance budget status report (Form F-198) [pursuant to WAC 392-123-115].The F-197 is made available to school districts through the Education Data System (EDS) portal for their recommended comparison to their county treasurers’ monthly report for accuracy and for the reporting of all F-197 discrepancies to their respective ESD for correction.OSPI’s F-197 in EDS can be thought of as an on-line bank statement that displays a school district’s checking account balance so it will know its bottom

line.

2014 Annual Conference

Budgeting Reminders for FY 2014-2015

48

Slide49

FY 2013–14 F-196 Update

Ramona GarnerSupervisor, School District/ESD Financial Reporting(360) 725-6304

Email:

ramona.garner@k12.wa.us

2014 Annual Conference

49

Slide50

Notice

is hereby given to school districts and ESDs, in accordance with WAC 392-117-035, that failure to adhere to the due dates below could result in a delay of apportionment payments. The final date for filing or forwarding will be considered as having been met if the postmark or other evidence indicates shipment prior to the due date or the next workday if the due date falls on a weekend. Final Action Date

Action

October

27

School Districts

- Final date for submission of completed F-196 data from the school district to the local ESD. The data will be submitted electronically and/or on an F-196 manual form. Districts not able to submit by the October

27

due date may request a waiver by email or written notice to the ESD.

November

3

ESDs

- Final date for the ESD to review and forward the certification page back to the school district for signature.

November

10

School Districts

- The signed certification page is due from the school district to the ESD.

November

17

ESDs

- Final date the signed certification page by the ESD is due at OSPI,

School

Financial Services.

FY 2013–14 F-196 Update

2014 Annual Conference

50

Slide51

Please make a note of these

dates; it is not too early to start gathering the needed data and balancing system items for year-end closing. Starting now on this process will make meeting the listed deadline dates easier for you. FY 2013–14 F-196 Update

2014 Annual Conference

51

Slide52

In

accordance with WAC 392-117-035, districts and ESDs that fail to adhere to the due dates could have a delay of apportionment payments. The final date for filing or forwarding will be considered as having been met if the postmark or other evidence indicates shipment prior to the due date or the next workday if the due date falls on a weekend.FY 2013–14 F-196 Update2014 Annual Conference

52

Slide53

The F-196 Process is completed in the EDS platform.

https://eds.ospi.k12.wa.us/login.aspx

If you have not accessed the EDS platform, contact your ESD for assistance.

FY 2013–14 F-196 Update

2014 Annual Conference

53

Slide54

The SAFS applications have been developed to be viewed with Microsoft’s Internet Explorer 6.0 or higher.  Results may be unpredictable using other browsers.

To help ensure your browser refreshes the application pages correctly, set the browsing option as follows in Internet Explorer:  go to Tools -> Internet Options -> General Tab -> Browsing History -> Settings.  Under the “Check for newer versions of stored pages” heading, select ‘Every time I visit the website.’2014 Annual Conference

FY 2013–14 F-196 Update

54

Slide55

Bulletin

No. 006-13 dated March 21, 2013, Addendum to Bulletin No. 006-13 dated June 21, 2013, and the forthcoming Second Addendum to Bulletin No. 006-13 describe the changes in more depth.

2014 Annual Conference

FY 2013–14 F-196

Update

55

Slide56

Added:

Program 22 Special Education—Infants and Toddlers—StateProgram 25 Special Education—Infants and Toddlers—Federal Revenue codes: 2122 Special Education—Infants and Toddlers—Tuition and Fees

4122 Special Education—Infants and Toddlers—State

4322 Special Education—Infants and Toddlers—State

6122 Special Education—Infants and Toddlers—Medicaid Reimbursements

6125 Special Education—Infants and Toddlers—Federal

6222 Special Education—Infants and Toddlers—Medicaid Reimbursements

6225 Special Education—Infants and Toddlers—Federal

6322 Special Education—Infants and Toddlers—Medicaid Reimbursements

6325 Special Education—Infants and Toddlers—Federal

7122 Special Education—Infants and Toddlers

8522 Educational Service Districts—Special Education—Infants and

Toddlers

Attachment

B of the Addendum to Bulletin No. 006-13

dated

June 21

, 2013

gives

detailed information on the revenue codes

listed

above.

2014 Annual Conference

FY 2013–14 F-196

Update

56

Slide57

Opened/Deleted/Changed the following:

General Ledger Accounts:Opened GL 250 in the GF, CPF, and TVF for Local program proceedsOpened GL 819 Restricted for Fund Purposes in the TVFOpened GL 830 Restricted for Debt Service in the DSFChanged the title of GL 606 to Anticipation Notes

PayableChanged GL 820 to be Assigned to

EncumbrancesChanged GL 862 to be Committed from Levy Proceeds

Added GL 660—Unearned Revenue in GF, CPF, DSF, ASB, TVF, and Permanent Fund

Added GL 831—Restricted for Compensated Absences in GF

Added GL 856—Held in Trust for Pensions and Other Employee Benefits in the PPTF

Added GL 857—Held in Trust for Private Purposes in the PPTF

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Opened the following revenue codes in the TVF:4100 Special Purpose—Unassigned

4300 Other State Agencies—Unassigned5200 General Purpose Direct Federal Grants—Unassigned6100 Special Purpose—OSPI Unassigned6200 Direct Special Purpose Grants6300 Federal Grants Through Other Entities—Unassigned

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Opened/Added/Deleted/Changed the following: Added Revenue 8521 Educational Service Districts—Special Education in GF

Opened Activity 28 Extracurricular in Programs 52 (Other Title Grants Under ESEA—Federal) and 69 (Compensatory—Other), with Objects 0, 2, 3, 4, 5, 7, 8, and 9 openOpened Object 8 Travel in Activities 62, 63, and 64 in Program 45 (Skill Center—Basic—State)Deleted Revenue 4166 Student AchievementDeleted Program 66 Student Achievement—State2014 Annual Conference

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Opened/Added/Deleted/Changed the following:

Title changes to the Fiduciary fund to be in accordance with GASB 63.Districts that choose to submit F-196 revision for 2012–13 to make the title change adjustments to be in accordance with GAAP need to do so through the normal F-196 revision process. Please request a WORD document for the revision by sending an email to me at:ramona.garner@k12.wa.usI will then send you the document with instructions. Please make sure you copy your ESD on all requests. New Certification Pages do not need to be re-signed/sent if the only revision item is the title changes to the Fiduciary fund. If any other changes are made to any other report or

dollar amounts are changed, then districts will need to re-sign/submit a new Certification Page.

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2014 Annual Conference

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2014 Annual Conference

FY 2013–14 F-196 UpdateThere are numerous tools on the SAFS’s website to assist Districts. District’s are encouraged to access these templates.

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There are no changes to the Certification Page. Districts are required to hand enter the number of days school was

operated.Districts that have a waiver from Washington State Board of Education will enter the number of days school was operated. Include a copy of the waiver letter with the signed Certification Page.Verify that the Ending Total Fund Balance on the Certification Page is the same as the Total Fund Balance on the Balance Sheet and the Ending Total Fund Balance on the Statement of Revenues, Expenditures, and Changes in Fund Balance.

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Within the F-196 system, your beginning fund balance in any year

MUST match the ending fund balance for the prior year.If you made a change to last year’s F-196 that resulted in a change to fund balance, you MUST enter it as a prior period correction.2014 Annual Conference64

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There are no changes to the manually entered Indirect Expenditures. The district should enter audit costs, legal costs, public relations expenditures, termination leave for federally supported staff, information system expenditures, pupil management and safety costs, and space and occupancy costs, if a cost plan has been established.

Remember that legal costs are very restrictive. Only enter costs associated with the interpretation of laws, regulations, or board policy. Also remember that no student record costs can be entered for information systems. Only enter costs associated with fiscal systems (i.e., WSIPC fees, districtwide IT support).

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There is help for determining what goes into the

Indirect Rates. Information regarding Restricted and Unrestricted Indirect Rates can be found on the OSPI website at:http://www.k12.wa.us/safs/FinancialResources.aspIndirect Cost Rates–Federal Indirect Rate Frequently Asked Questionshttp://www.k12.wa.us/safs/INS/ACC/1314/am.aspChapter 10 of the Accounting Manual – Grants Management

http://www.whitehouse.gov/omb/circulars_a087_2004#c

OMB Circular A-87

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The 5 year Restricted Indirect Cost

Rates have been updated and posted.2014 Annual ConferenceFY 2013–14 F-196 Update

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As stated in the Addendum to Bulletin No. 081-11, dated January 12, 2012, Attachment B, districts that coded staff under duty code suffix “4,” for the purposes of recording the costs of innovative activities included in supplemental contracts, will submit a brief description of these innovative activities with the district’s F-196.

On The Data Requirements for Supplemental Reports, item D requires an entry. Although there has not been any “cost-of-living” increases for several years, under RCW 28A.400.205 districts must certify either “yes” or “no” that it has spent funds provided for cost-of-living increases on salaries and salary-related benefits.Districts that receive the Medicaid reimbursement should use Revenue code 6321 because the Medicaid

reimbursement is coming from DSHS, not OSPI.

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There are no changes to the manually entered distorting items such as election expenses, flow-through grants, alterations/renovations, and fines/penalties. This data is used in the Federal Restricted and Unrestricted Indirect

Rate.The F-196 contains a preliminary MOE test for Special Ed. This is a basic version of the actual test. Districts need only pass one of the four tests to pass MOE:State and Local, in aggregate.State and Local, per pupil.

Local, in aggregate.Local

, per pupil.Districts should note that passing the preliminary test does not necessarily mean that a district has passed Maintenance of Effort for Special Education. Final tests are done following the F-196 process.

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After your ESD approves your F-196, and you feel that your financial statements are correct, you can proceed with your year-end close. Any review of the district’s

F-196 by OSPI does not affect the district’s year-end close process.If your district requires that an F-196 revision be made, please contact Ramona Garner via email at: (

ramona.garner@k12.wa.us)

to request an MS Word document. Upon receipt of your email, I will send the district’s F-196 and instructions for making revisions. Don’t forget to cc your ESD when making a revision request.

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Questions and comments are always welcome and appreciated. Whenever possible, emailing your question is beneficial in assuring that OSPI understands the question and allows a “paper trail” for OSPI and the district if the question should arise

again. Thank you!

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