Fiscal Year at a Glance

1
Fiscal Year at a Glance

• WASBO New School Administrator
• Business Support Staff Workshop
• August 16, 2007
• Lori Ames, Consultant-DPI
• Brad Adams, Consultant-DPI
• Robert Borch, Assistant Superintendent-Elmbrook

2
Agenda

• 900 1015 Introduction, Website Review
• 1015 1030 Break
• 1030 1200 DPI reporting requirements,
  district budgeting
• 1200 100 Lunch
• 100 215 Building Trust
• 200-230 Break
• 230-400 Money Saving Tips

3
Who We Are
4
Finance Team.What We Do

• Collect data reports from districts in order to
  distribute over 5.6 billion in State Aid and
  credits
• Provide data to individuals, organizations,
  state and federal agencies
• Provide consultation services as needed
• Provide a website and training opportunities

5
How We Can Help You

• Web page publications tutorials
• Phone calls, e-mail
• Listserv notices
• Conferences and workshops

6
What Should You DoToday!

• Bookmark this website
• http//www.dpi.wi.gov/sfs/index.html
• Subscribe to our list serv
• http//www.dpi.wi.gov/sfs/mailings.html
• Click on the link to subscribe

7
Website Review
8
Why Fiscal Year at a Glance?

• Answer the basic questions that we receive
  throughout the year
• Show how data elements translate into the payment
  of aid
• Show connections between fiscal years
• Show connections between various pieces of data

9
Master Multi-Tasker

• How many years can you juggle at one time

10
July - December

• What activities take place relating to the prior
  fiscal year (2006-07)?

11
School Calendar Report

• Report used to collect data on the districts
  days and hours of instruction for the just
  completed school year.
• Data is used to verify compliance with state
  statutes 121.02(1)(f)1. and 121.02(1)(f)2.

12
Days of Instruction

• Districts are required to schedule at least 180
  school days
• s. 115.01(10)(a) School days are days on which
  school is actually taught and the following days
  on which school is not taught.
• Days on which school is closed by order of the
  school district administrator because of
  inclement weather and days on which parent
  teacher conferences are held, not to exceed 5
  days.
• Days on which school is closed by order of a
  local health officer, as defined in s. 250.01(5).

13
Hours of Instruction

• Minimum number of hours required at various
  levels
• Kindergarten 437 hours
• School Board operating a 4 year old kindergarten
  may use up to 87.5 of the scheduled hours for
  outreach activities.
• Grades 1 6 1,050 hours
• Grades 7 12 1,137 hours
• (Districts report these hours by school building
  on the school calendar report.)

14
Pupil Transportation Report

• Report used to collect data on the districts
  actual ridership per state statute 121.58 for
  the just completed school year (summer regular
  school year summer school starts the school
  year!).
• Data is used to calculate the districts
  transportation categorical aid.
• Districts will need to document the procedures
  used to determine actual ridership. Auditors may
  review this documentation at the year end audit.

15
School Census Report

• Report used to collect the districts census data
  as of June 30th of the just completed fiscal
  year.
• Data is used to calculate the districts common
  school fund categorical aid (library aid).

16
Census Data

• State statute 120.18(1)(a) allows districts to
  identify census numbers by utilizing one of two
  established procedures
• Perform an actual physical count.
• Perform a mathematical calculation to determine a
  school census number.

17
Census Data

• Mathematical calculation example
• (as of the prior 3rd Friday in September)
• Res. school district enrollees 1,604
• Res. private school enrollees 86
• Res. home-based private education
• programs enrollees 54
• Res. children between the ages of
• 4 and 20 who are not accounted for
• in the counts listed above (estimate) 326
• 2,070

18
Common School Fund

• The common school fund is one of the State Trust
  Funds.
• Managed by the Board of Commissioners of Public
  Lands (BCPL)
• Net earnings of the fund are distributed as
  library aid each year to public school districts
  for the purchase of school library materials

19
Common School Fund Aid

• Districts are given an estimate of common school
  fund aid in January with an actual aid payment on
  May 1st.
• The entire allocation must be spent by June 30th
  of the year in which it is received.
• The Department annually verifies that the full
  amount of aid has been spent. District may
  receive an inquiry if it appears funds may go
  unspent.

20
Common School Fund Aid

• Common School Fund Aid may be spent on
• WUFAR Function 222 000 - Object Codes
• Audiovisual materials 431
• Library books 432
• Newspapers 433
• Periodicals 434
• Instructional software 435
• Microfilm 438
• Other Media 439

21
PI 1505AC (Aid Certification)

• Report used to collect critical financial data
  from the districts ledger for the just completed
  fiscal year.
• Data is used to calculate the districts October
  15th aid certification.
• District data entered on the PI 1505AC is
  verified by the auditor via the PI 1506AC (report
  completed by the auditor).

22
PI 1505 Full Annual Report

• Report used to collect the districts final
  revenues, expenditures, assets, liabilities, and
  equity for all funds for the just completed
  fiscal year.
• Data used to calculate the districts final aid
  eligibility as per state statute 121.54(4)(b).

23
Special Education Annual Report

• Report used to collect the districts special
  education (fund 27) expenditures for the just
  completed fiscal year.
• Data used to calculate the districts special
  education categorical aid.

24
Audit

• Annual audit of district financial records is
  statutorily required.
• The independent auditors will verify that the
  financial statements present fairly the balance
  sheet as of June 30th and the results of
  operations for the year ended June 30th.

25
Purpose of the Audit

• Maintain public confidence in the reliability of
  published financial data.
• Assure users that the financial statements are
  fairly presented in accordance with Generally
  Accepted Accounting Principles (GAAP).
• Determine compliance with state and federal
  requirements.

26
Phases of the Audit Process

• Planning
• Preliminary Fieldwork
• Final Fieldwork
• Communication with Management

27
Audit Preparation

• Request a list of all items needed for the audit.
• Post all year-end items.
• Reconcile all balance sheet accounts.
• Have all manual journal entries available for
  review.
• Print year-end general ledger, revenue, and
  expenditures reports
• RELAX!

28
July - December

• What activities take place relating to the
  current fiscal year
• (2007-08)?

29
Final Budget Development

• Finalize current year expenditures and revenues
• Expenditures
• Salary/benefits per contract/negotiations
• Other program/district expenditures
• Revenues
• Revenue Limit revenues
• Equalization Aid
• Tax Levies
• Computer Aid
• Categorical Aids (review prior year reports)
• Grants
• Local Revenues

30
Final Budget Development

• The districts budget is a roadmap based on the
  districts best estimations.
• Two major revenues remain an estimate until
  mid-October when the district can calculate the
  revenue limit for taxing purposes
• Equalization Aid
• Tax Levy

31
Budget Hearing Adoption

• The Budget Hearing and Adoption process is
  outlined in state statute 65.90.
• All districts are required to have a budget
  hearing.
• Common and Unified High School Districts are
  required to hold the budget hearing at the same
  time and place as the annual meeting.

32
Budget Hearing and Adoption

• School boards are required to approve a
  proposed budget for presentation at the budget
  hearing.
• An excel file is available to assist with the
  recommended format for budget presentation and
  publication.
• http//www.dpi.wi.gov/sfs/budhear.html

33
Budget Hearing and Adoption
34
Budget Publication

• School Districts must publish notice of the
  budget hearing as well as the proposed budget
  summary.
• Common S.D. at least 10 days prior
• Unified and UHS S.D. at least 15 days prior

35
Budget Hearing Notice
36
Budget Publication Summary
37
Annual Meeting

• State statute 120.08 (1) identifies the date and
  time of the annual meeting.
• Common S.D. 4th Monday in July 800pm
• UHS S.D. 3rd Monday in July 800pm
• Unless

38
Annual Meeting

• The electors at one annual meeting vote to hold
  the following annual meeting at a different date
  or hour or authorize the school board to
  establish a different date or hour.
• No annual meeting may be held before May 15th or
  after October 31st.

39
Annual Meeting Notice

• School district must publish a class 2 notice for
  the annual meeting.
• 1st notice at least 2 weeks prior to meeting
• 2nd notice not more than 8 days or less than 1
  day prior to the meeting

40
Annual Meeting Notice
41
Original Budget Adoption

• The school board shall adopt an original budget
  at a school board meeting after the public
  hearing and no later than the meeting in which
  the tax levy is set.
• November 1st deadline for adopting the
  original budget and setting the levy amount
• November 6th deadline for certifying the levy
  amount to the municipalities

42
Summer School FTE Report

• Report used to collect district FTE data for the
  just ended summer term. (Summer school starts the
  school year!)
• FTE data is used in the calculation of a
  districts revenue limit and equalization aid.
• The summer school report is one of the few
  reports that ask for an FTE count as opposed to a
  head count.

43
Summer School FTE

• Summer School Membership (FTE) is obtained by
• Calculating the districts total summer school
  resident pupil membership minutes
• Dividing the total by 48,600 and rounding to the
  nearest whole number
• A worksheet is available to assist in this
  process.
• http//www.dpi.wi.gov/sfs/xls/pi1804_00a.xls

44
Summer School Fees

• Fees for the resident student or parent may be
  charged for individual use supplies (towels, gym
  clothes, band instruments, notebooks, pencils),
  textbooks, or similar items (workbooks) if the
  district claims state aid under state statute
  121.14.
• Fees may be charged for social, recreational, or
  extracurricular summer classes and programs which
  are neither credited toward graduation nor
  eligible for state aid s. 118.04(4).

45
Summer School Fees

• For any summer school fee charged
• the fee must fund an item that is legally
  permitted and actually purchased for summer
  school use.
• the fee may be not used to subsidize the cost of
  any other classes or students.
• the fee must be based upon the actual cost of the
  applicable item(s).

46
Audit of Summer School Fees

• If you district is required to have a membership
  audit, the auditor will review your summer school
  fte and any associated summer school fees.
• The auditor will question fees if
• the fee does not appear to be legal.
• the amount of the fee exceeds the actual cost.

47
Audit of Summer School Fees

• If a fee is deemed excessive or inappropriate
• The district may be asked to provide assurance
  that fees charged in the future will be in
  accordance with statutory requirements.
• The summer school fte claimed may be adjusted or
  disallowed.
• The district will be required to have a
  membership audit of summer school fte in the
  following year.

48
September Pupil Count Report

• Report used to collect district count data for
  the 3rd Friday in September.
• Data is converted to full-time equivalency and
  used in the calculation of a districts revenue
  limit and equalization aid.

49
General Count Guidelines

• In general, count the student if
• The student is a district resident.
• The District is financially responsible for the
  students educational program.
• The student is present for instruction on the
  count date or meets the before and after rule.

50
General Count Guidelines

• Present The student is in attendance for
  instruction on the count date.
• Absent - The pupil is absent on the count date,
  but has attended at least one day during the
  school year prior to the count date and at least
  one day during the school year after the count
  date, and has remained a resident of the district
  during the period of absence.

51
Count Categories

• Preschool Special Education
• 4 YK 437 hours
• 4 YK 524.5 hours
• 5 YK ½ day
• 5 YK 3 full days
• 5 YK 4 full days
• 5 YK 5 full days
• 5YK Blended
• Grades 1 - 12

52
Preschool Special Education

• Students must be at least 3 years of age as of
  the count date.
• Student must have an IEP (Individualized
  Education Plan) and be receiving instructional
  services.
• No minimum required number of instruction hours

53
4 Year Old Kindergarten

• Districts should only use these two lines if
• the 4 year old kindergarten program is open to
  all students
• the program is funded by district resourcesnot
  solely by Title One funds.
• the student is at least 4 on or before September
  1st.

54
4 Year Old Kindergarten

• 4 Yr 437 Hours program shall have at least 437
  hours of instruction, which can include up to
  87.5 hours of outreach activities.
• 4 Yr 524.5 Hours program shall have at least
  437 hours of instruction and 87.5 hours of
  outreach. The school shall NOT substitute
  instructional time for outreach activities.

55
4 Year Old Kindergarten

• Beginning in 2006-07, districts starting a new 4K
  program will need to sign-off on a program
  assurance form verifying that the program meets
  all 4K requirements
• Contact Jill Haglund, Early Childhood Education,
  608-267-9625, with questions

56
5 Year Old Kindergarten

• 5 Yr Old Half Day Program
• 5 Yr Old Three Full Day Program
• 5 Yr Old Four Full Day Program
• 5 Yr Old Five Full Day Program
• 5 Yr Old Blended Program

• The student must be at least 5 years of age
• on or before September 1st.

57
Grades 1 - 12

• Students must be 6 years of age on or before
  September 1st of the current year or be admitted
  under early admittance guidelines as defined by
  the Board of Education.

58
October 15th Aid Certification

• On or shortly before October 15th, the school
  financial services team will calculate the
  districts current year aid certification.
• This amount represents the amount of aid the
  district will receive during the current year.
• This number should be used in the current year
  revenue limit calculation.

59
Equalization Aid

• Purpose of Equalization Aid is to
• Cause the State to assume a greater portion of
  costs
• Relieve the property tax burden

60
Equalization Aid

• Equalization Aid Formula is
• a cost-sharing formula
• based on a districts ability to pay, as measured
  in terms of property wealth per pupil
• Compared to a state guaranteed tax base
  (guaranteed valuation per pupil)

61
Equalization Aid

• Goal of the current school aid formula is to
• Distribute funding so that school districts that
  spend the same amount per pupil will have a
  similar tax rate, regardless of their property
  value per pupil. However, the formula doesnt
  guarantee all districts will have the same tax
  rate rather, it attempts to achieve equalization
  of each districts tax base.

62
Equalization Aid

• Three major District factors that affect the
  calculation of equalization aid
• Membership
• Shared Cost Per Member (expenses funded by state
  aid and taxes on per member basis)
• Equalized Value Per Member

63
Equalization Aid

• Major State factors that affect the equalization
  aid calculation
• Total amount of funds appropriated for general
  aid on a state-wide level
• Value of property guaranteed per pupil

64
District X District Y

• Shared Cost/ 9,502 9,502
• Member
• Property Value/ 201,156 345,925
• Member
• State Aid/ 7,851 6,767
• Member
• Aided 83 71

65
Equalization Aid

• Districts with the lowest property valuations
  receive the highest of state aid whereas
  districts with the highest property valuations
  receive the lowest of state aid.
• The least property wealthy K-12 district in the
  state has an equalized property value per member
  of 201,156 whereas the most wealthy K-12
  district has a per member value of 5,521,325.

66
Revenue Limits

• In 1993-94, revenue limits were implemented to
  control increases in school property tax levies.
• Revenue limits are determined on an individual
  district basis and are not affected by changes in
  other districts.
• The calculation involves both district-specific
  and state variables.

67
Revenue Limit

• A revenue limit restricts the amount of money a
  district can receive as a result of
• State general aid
• Local property taxes
• Department of Revenue Computer Aid
• It does not include all revenues
• It is not a spending limit

68
Revenue Limits
4,900,000
4,200,000
3,500,000
2,800,000
2,100,000
1,400,000
700,000
69
Revenue Limits
4,900,000
4,200,000
3,500,000
2,800,000
2,100,000
1,400,000
700,000
70
Revenue Limits
4,900,000
4,200,000
3,500,000
2,800,000
2,100,000
1,400,000
700,000
71
Revenue Limits

• Each year, a districts revenue limit is
• Based upon a districts 3 year full-time
  equivalent (fte) rolling enrollment average
• Allowed to increase on a per member basis that is
  tied to inflation (March to March CPI All Urban
  Index)
• Can be changed by legislative action
• 2007-08 - 264.12 per member (governors proposal)

72
Revenue Limits

• Authority to exceed the revenue limit is given by
  a referendum
• The State does not control when or for what
  purposes districts should consider a referendum.
• The issue of maintaining a school program or
  voting to exceed the revenue limit is a local
  decision.

73
Referendum

• Recurring Exemption increase to the revenue
  limit that is base building once given the
  taxing authority, the district always maintains
  the taxing authority
• Non-recurring Exemption increase to the revenue
  that is not base-building - only given the
  authority based on the timeframe identified in
  the resolution

74
Referenda Report

• Report used to collect data an any district
  referendums.
• Districts must notify DPI of upcoming referendum
  within 10 days of adopting the resolution.
• After the referendum vote, the district should
  update the vote to show the vote tally.

75
Referenda Report

• Information required
• District contact
• Purpose of borrowing or use of revenue limit
  dollars
• Dollar amount of the proposed borrowing (Debt
  Referendum)
• Recurring vs. non-recurring and the number of
  years involved (Revenue Limit Referendum)
• Actual, complete wording of resolution/ballot
  question.

76
Referenda Report

• Districts are also required to send to DPI a copy
  of the adopted resolution authorizing election,
  and
• A copy of board of canvassers statement which
  reports official vote tally within 10 days of the
  election
• They can both be faxed to Gene Fornecker, at
  [phone], or mailed.

77
Referenda Report

• One final note
• Be sure you know what your
• resolution really says!
• for each year of the 2005-06 through 2009-10
  school years shall include, on a recurring basis,
  an amount of 400,000 in excess of the revenue
  limits

78
Referenda Report
Which scenario does this mean? 1, 2 or
something else?
1 or 2
79
Revenue Limit

• Although the district should be creating an
  estimated revenue limit throughout the entire
  budget development process, the revenue limit
  from which the tax is levied is calculated in
  late October.

80
Tax Levy Report

• Report used to collect the districts current
  year tax levies and mill rates.
• Data from the report is automatically downloaded
  into tax levy certification forms that are sent
  by the district to the taxing municipalities.
• Data from the report is automatically shared with
  the Department of Revenue.

81
Tax Levy

• On or before November 1, every public school
  board must approve the levy amounts necessary
• to operate and maintain district schools
  (s.120.12(3) Wis. Stats.),
• to meet any irrepealable tax obligations
  (s.120.12(4) Wis. Stats.).
• School district property taxes include levies for
  the general operations, debt service, capital
  expansion, and community service funds
• On or before November 6, the school district
  clerk must certify to each municipal clerk the
  amount of school district tax to be assessed on
  the tax rolls of that municipality (s.120.12(3)
  Wis. Stats.).

82
PI 1504 Budget Report

• Report used to collect the district proposed
  revenue and expenses for all funds for the
  current fiscal year.
• Data is used to calculate the districts
  following year aid estimate provided on July 1st
  as per state statute 121.15(4)(b)

83
Special Education Budget Report

• Report used to collect the districts proposed
  special education (fund 27) expenditures and
  revenues.
• Data is used to estimate future special education
  categorical aid payments.

84
July - December

• What activities take place relating to the next
  fiscal year (2008-09)?

85
2008-09 Budget Development

• Although detailed budget development usually
  doesnt start until late December/early January,
  you should be thinking about
• Enrollment trends
• Changing district dynamics (development,
  population trends, etc)
• Revenue trends
• Impact of negotiations

86
6 Months zipped by!

• Are you ready for 6 more???

87
January - June

• What activities take place relating to the prior
  fiscal year
• (2006-07)?

88
Prior Year Finishing Touches

• The School Financial Services team is auditing
  the prior year annual and audit reports.
• Prior year activity is primarily limited to
  responding to questions that arise as a result of
  those audits.

89
January - June

• What activities take place relating to the
  current fiscal year
• (2007-08)?

90
January Pupil Count Report

• Report used to collect district count data for
  the 2nd Friday in January.
• Data is converted to full-time equivalency and
  used in the calculation of a districts
  equalization aid.

91
Membership Audit

• On or about February 1st, the School Finance Team
  will announce which districts are required to
  have a membership audit.
• The districts auditor will verify the districts
  reported counts for
• 2nd Friday in September
• 3rd Friday in January
• Summer School (as well as fees)

92
Debt Schedule Report

• Report used to collect the districts long-term
  debt repayment schedules for all district
  indebtedness.
• Data used to project future equalization aid
  payments from a state-wide perspective.
• Debt schedule report should be updated anytime
  new debt has been issued or existing debt has
  been amended.

93
Budget Amendments

• As the current budget year progresses, you may
  find expenditure needs that differ from the
  budget that was originally approved.
• Changes in amount of appropriation and purposes
  (functions) must be approved by a two-thirds vote
  of the school board.
• Publish a class 1 notice of the budget change
  within 10 days of Board approval.

94
Budget Amendments
95
January - June

• What activities take place relating to the next
  fiscal year
• (2008-09)?

96
2008-09 Budget Development

• Review District Accounting Structure
• Determine if the current accounting structure
  meets your information and reporting needs
• Determine if the school financial services team
  has made any changes to WUFAR that would require
  new account codes http//www.dpi.wi.gov/sfs/wufar.
  html

97
2008-09 Budget Development

• Develop enrollment projections
• Used in the calculation of the revenue limit
• Used in determining staffing needs
• Used in calculating other revenues such as local
  fees

98
2008-09 Budget Development

• Develop Preliminary Revenues
• Calculate an estimated revenue limit very
  important as this is the largest revenue source
  of the district and greatly impacts the
  districts expenditure budgeting
• Review trends to estimate categorical aids and
  other local revenues
• Identify potential grant sources

99
2008-09 Budget Development

• Develop Preliminary Expenditures
• Reviewing staffing needs and expenditure levels
  many contracts require advance notice in the
  event staff reductions, layoffs, non-renewals,
  etcare needed
• Review program offerings to see if expenditure
  requirements have changed
• Review trends in utility, insurance, and other
  related expenses

100
Take a deep breath!

• You are not alone.

101
Questions???

• Brad Adams, Consultant, 267-3752
• Lori Ames, Consultant, 266-3464
• Karen Kucharz, Consultant, 267-9707
• Jerry Landmark, Asst. Dir., 267-9209
• Kathy Guralski, Auditor, 266-3862
• Gene Fornecker, Auditor, 267-7882
• Natalie Rew, Auditor, 267-9212
• David Carlson, Director, 266-6968