Adult Education Finance for the NonFinancial Manager

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Adult Education Finance for the Non-Financial
Manager
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Finance for the Non-Financial Manager

• Accounting Codes
• EF-X-132
• Subsidy Formula
• Other Issues
• Questions

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Accounting Codes

• Form the backbone of any financial reporting and
  accountability system
• This structure gives an entity the ability to
  accurately and effectively report on its
  financial activities
• Provide a uniform means for comparing
  evaluating organizations (i.e. School Districts)
• Maine DOE Model Chart of Accountshttp//www.mai
  ne.gov/education/data/handbook/handbookmenu.htm

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Accounting Codes

• Expenditures use a series of levels in a
  hierarchy to identify the following
• The fund from which the funds are being expended
• The program that is spending the funds
• The function for which the funds are being spent
• The object on which the funds are spent
• The level of instruction associated with the
  expenditure (Cost Center)

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Accounting Codes

• Further they identify
• The project for which funds are being spent
• The operational unit on which the funds are being
  spent
• The subject matter on which the funds are being
  spent
• The job class associated with the expenditure

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Accounting Codes

• Expenditures use a series of levels in a
  hierarchy to identify the following
• The fund from which the funds are being expended
• The program that is spending the funds
• The function for which the funds are being spent
• The object on which the funds are spent
• The level of instruction associated with the
  expenditure (cost center)

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Accounting Codes
100 6500 1000 1010 40

• These are the minimum categories in the States
  Chart of Accounts
• Additional categories may be added for more local
  level detail

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Accounting Codes
The fund from which the funds are being expended
100 6500 1000 1010 40
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Accounting Codes
Examples of Fund Codes
Fund Code 150 may be used to specifically
differentiate Adult Education from other General
Fund expenditures if the LEA wishes
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Accounting Codes

• The program that is spending the funds

100 6500 1000 1010 40
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Accounting Codes
Examples of Program Codes(specifically
applicable to adult education)
Summary Code
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Accounting Codes

• The function for which the funds are being spent

100 6500 1000 1010 40
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Accounting Codes
Examples of Function Codes
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Accounting Codes

• The object on which the funds are spent

100 6500 1000 1010 40
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Accounting Codes
Examples of Object Codes
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Accounting Codes

• The level of instruction associated with the
  expenditure (Cost Center)

100 6500 1000 1010 40
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Accounting Codes
Examples of Cost Center Codes
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Accounting Codes
Can you name these accounts?
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Accounting Codes
Benefits for the teacher of an adult education
CTE course
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Accounting Codes
Supplies for an adult education high school
completion course
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Accounting Codes
Salary for an adult education teacher of an adult
transitions course
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Accounting Codes
Salary for an adult education Director
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Program Codes
Subsidizable Category
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Special Object Codes
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The EFX-132 is the Form for Reporting Your
Programs Financial Information and Calculating
Subsidy.
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EF-X-132 Page 1

• FTE Full Time Equivalent (expressed as a
  decimal)
• FTE calculation based on a standard 40 hour work
  week
• Hours worked as stipulated in contract or other
  work agreement
• Divide hours worked by 40
• Work 20 hours FTE .50
• Work 32 hours FTE .80
• Work 19 hours FTE .48

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EF-X-132 Page 1

• Item 10 Major Duties
• These are NON-ADULT EDUCATION duties
• Examples
• Alternative Education Director
• Affirmative Action Officer for district
• Gifted and Talented Coordinator
• DO NOT list duties that are part of the Adult
  Education Directors job (e.g. intake, testing,
  designing the course catalogue, registrations,
  submitting reports)
• Being on the Districts Administration Team is
  considered part of the duties of an Adult
  Education Director

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EF-X-132 (Page 2) Enrollment Data
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Demog Tab Pages 1 and 2
Finan Tab Page 3
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EF-X-132 Financial Page
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EF-X-132 Financial Page

• Organization based on the hierarchy of the MDOE
  Chart of Accounts
• Section A Instructional Programs
• Section B Grants and Contracts
• Section C Administration
• Additional information and detail
• Data used to calculate the Adult Education
  Subsidy (Items marked with an asterisk)

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EF-X-132 Financial Page
Subsidizable Expenditure
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EF-X-132 Financial Page
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EF-X-132 Financial Page
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EF-X-132 Financial Page
1.00
Line 10f on Page 1
Directors Salary Detail Page 3
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EF-X-132 Financial Page
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EF-X-132 Financial Page
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EF-X-132 Financial Page
Directors reported salary reduced by the 25
reflecting the percentage of time spent on
Alternative Education
1.00
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Accounting CodesEFX-132

• Questions

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Accounting Codes

• How do your codes stack up?
• What differences exist
• What will it take to reconcile those differences
• What special needs do you have (for codes)
• Unique programs
• Local reporting expectations (e.g. multi SAU
  adult ed programs)
• Would you be able/feel comfortable having the
  adult education financial data reported as part
  of the MDOE Data Warehouse reporting process?

Talk to your Bookkeeper NOW!
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Adult Education Subsidy Formula

• Two Key Components of Formula
• Allowable Expenditures
• Ceiling

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What Are Allowable Expenditures?

• Instructional Costs

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Instructional Costs

• Teachers Salaries
• Teachers Benefits
• In The Following Instructional Categories
• Local Literacy (6600)
• High School Completion (6500)
• Workforce Training Retraining (6300)
• Adults With Disabilities (6400)
• Adult Transitions (6060)

Projected to become a subsidizable category in
FY07
75 Reimbursement
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What Are Allowable Expenditures?

• Instructional Costs
• Object Codes
• Salaries 1010
• Benefits 2010
• Contracted Services eligible for subsidy 3430

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What Are Allowable Expenditures?

• Instructional Costs
• Administrative Costs

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Allowable Administrative Costs

• Directors Salary Benefits
• Assistant Directors - Salary Benefits
• ABE Coordinator - Salary Benefits
• Clerical - Salaries Benefits
• Instructional Support Services -Salary Benefits

70 Reimbursement
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What Are Allowable Expenditures?

• Instructional Costs
• Administrative Costs
• Salaries 1040 1080

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What Are Allowable Expenditures?

• Instructional Costs
• Administrative Costs
• Salaries 1040 1080
• Benefits 2040 2080

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What Are Allowable Expenditures?

• Instructional Costs
• Administrative Costs
• Supplies Other Support Services

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Supplies/Other Support Services

• Textbooks Instructional Materials
• Certain Other Costs
• Postage
• Telephone
• Publicity
• GED Annual Fee
• Fiscal Services
• Travel To State Meetings

50 Reimbursement
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Supplies/Other Support Services

• Textbooks Instructional Materials
• Supplies 6100

50 Reimbursement
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Supplies/Other Support Services

• Textbooks Instructional Materials
• Certain Other Costs
• Postage 5310
• Telephone 5320
• Publicity 5400
• GED Annual Fee 8130
• Fiscal Services 5000
• Travel To State Meetings 5830

50 Reimbursement
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Adult Education Subsidy Formula

• Two Key Components of Formula
• Allowable Expenditures
• Ceiling

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Adult Education Subsidy Formula

• Ceiling Calculation
• Local Share Subsidy Check Ceiling
• 60,000 40,000 100,000

The Ceiling Represents the Maximum Amount of
Expenditures That Will be Considered for
Calculating the Subsidy.
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XYZ Adult Community Education Program Subsidy
Calculation for FY2004 Case 1

• Amount of state subsidy received in foundation
  year (FY02) - 70,000.00
• Amount of Local Participation in foundation year
  (FY02) - - 30,000
• Instructional Expenses - 70,000.00
• Administrative Expenses - 40,000.00
• Supply Expenses - 20,000.00

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Subsidy Calculation
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Subsidy CalculationOrder of Operations

• I Instructional Exp.
• Am Administrative Exp.
• Smart Supplies Exp.

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Subsidy Calculation
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Subsidy Calculation
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Subsidy Calculation
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Subsidy Calculation
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Subsidy Calculation
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Subsidy Calculation
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Subsidy Calculation
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Subsidy Calculation
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XYZ Adult Community Education Program Subsidy
Calculation for FY2006 Case 2

• Amount of state subsidy received in foundation
  year (FY04) - 70,000.00
• Amount of Local Participation in foundation year
  (FY04) - - 80,000.00
• Instructional Expenses - 70,000.00
• Administrative Expenses - 40,000.00
• Supply Expenses - 20,000.00

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Subsidy Calculation
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Subsidy Calculation
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Subsidy Calculation
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Subsidy Calculation
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Subsidy Calculation

• Case 1 Subsidy 73,500.00 (local share
  30,000.00)
• Case 2 Subsidy 90,000.00 (local share
  80,000.00)
• Conclusion?
• The amount of your subsidy is impacted
  (positively or negatively) by the amount of the
  local share.

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Subsidy Calculation

• Also remember that how you spend your money
  (programming categories etc) will impact the
  amount of subsidy you get.
• Example 1 director retires AEFLA coordinator
  takes over as director no new coordinator hired
  subsidy decreased (reduced admin. expenditures)
• Example 2 Offered fewer HSC courses but
  increased enrichment classes offered total
  expenditures remained the same but subsidy
  decreased (expenditures for enrichment classes
  not part of subsidy formula)

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Other Issues

• No Subsidy For General Courses (AKA Enrichment
  or Quality of Life)
• No Subsidy For Equipment Purchase or Upkeep
• Do not include in the subsiduzable categories any
  expenditures that were paid for by grants or
  other sources (except registration fees). These
  would be reported under a separate column on the
  form.
• Carl Perkins CTE AEFLA Grants already on form
• Other activity would be reported under a separate
  6__ Other column

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How Do I Account For Fees We Collected?

• Registration Fees Are Reported on the EFX-132 (at
  the bottom of page 3)
• Registration Fees collected for subsidizable
  activities will be subtracted from allowable
  Supply expenditures

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How Do I Account For Fees?

• What are Fees for subsidizable courses?
• Were the participants charged a fee to take the
  course (including lab and/or materials fees)?
• Was that teachers salary reported (on the
  EFX-132) in one of the program categories that is
  eligible for subsidy?
• If the answer to both questions is Yes, then you
  have Fees For Subsidizable Courses

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Remember, if an expenditure isnt in one of the
asterisked cells, it will not be included in the
subsidy calculation!
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Subsidy Amount is Prorated Based on Available
Funds
Current Rate is About 60 /- (subsidy reduced by
40)
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Subsidy Calculation Worksheet

• Fill in the amounts from the appropriate cells on
  the EF-X-132
• Provides an estimate of your subsidy for the
  following year.
• The one unknown is the Prorate

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Subsidy Calculation Worksheet
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http//www.maine.gov/education/aded/dev/subsidy/ad
ult_education_year.htm
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Got Questions?

• Call - 624-6754
• Email - andy.mcmahan_at_maine.gov
• District level Bookkeeper Contact
  joanne.allen_at_maine.gov

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Adult EducationFinance For the Non-Financial
Manager