WASDA

1
WASDA New Administrator's Workshop March 20 21,
2007
Everything You Need to Know About School
Finance....Right Now!!!!
2
Agenda

• 900 - 910 Who we are What we do How we can
  help you.
• 910 - 1030 The Revenue Limit and What It
  Means for Your Budget Development Activities
• 1030 - 1045 Break

3
Agenda

• 1045 - 1200 Equalization Aid How It Works,
  How to Explain Changes, How to Project Aid Fund
  80, Short Term Borrowing, OPEB
• 1200 - 1245 Lunch
• 1245 - 200 Counting Kids, Days Hours of
  Instruction, WUFAR, Special Education, Cost
  Comparisons

4
Finance Team.Who We Are
5
Finance Team.What We Do

• Collect data reports from districts in order to
  distribute over 5.8 billion in State Aid and
  Credits in 2006-07, including 5.3 billion in
  General and Categorical Aids
• Provide data to individuals, organizations, state
  and federal agencies
• Provide consultation services as needed
• Provide a website and training opportunities to
  help people help themselves

6
Finance Team.How We Can Help You

• Web Page Publications Tutorials
• Phone calls, e-mail
• Provide information via our listserv
• (we recommend you subscribe see information
  under Mailings/List Serve on the green scan bar
  on our website)
• New Admin. Workshop - March 20 21

7
How We Can Help You

• New Business Manager/Bookkeeper Workshop - TBD
• Spring Finance Workshops - April
• State Superintendents Workshop - Sept.
• Getting It Right Workshop - Oct.
• January WASB/WASDA/WASBO Convention
• Various WASBO and WASDA Seminars throughout the
  year

8
How We Can Help You

• Bookmark this page !!!!!
• http//dpi.wi.gov/sfs/index.html

9
Lets Look at the Handouts

• Roadmap of the School Financial Services Website
• SAMPLE 06-07 Revenue Limit Worksheet
• District-Specific 06-07 Revenue Limit Worksheet
  (not final)
• District-Specific 07-08 Estimated Revenue Limit
  Base
• District-Specific 06-07 Percentage Method
  Equalization Aid Worksheet
• District-Specific 06-07 Oct 15 General Aid Cert
• 06-07 Equalization Aid Executable Worksheet for
  Projections
• Fund 10 SAMPLE Planning Budget
• Budget Timeline Model
• Slides from Power Point Presentation

10
Our Website Get it On Your Radar
11
REVENUE LIMIT THE BASICS

• what a new administrator needs to know to
  calculate the revenue limit

12
The Big Picture
Revenue Limit Calculation
- the Revenue Limit computation controls from
70-90 of your budget, having a direct effect on
budget development activities. - districts begin
to develop their new-year Revenue Limit estimates
in January as they begin to develop the budget
for the upcoming fiscal year. - remember to
update your Revenue Limit Calculation and budget
planning documents as you receive new information
throughout the year.
Budget Planning Papers
13
REVENUE LIMIT DEFINITION

• The revenue limit is a limit (or control) on the
  revenue a school district is entitled to receive
  from
• 1.) General State Aid
• (Equalization Aid)
• 2.) Local Levies (10, 38, 41)
• 3.) State Computer Aid
• It is not an expenditure control or spending
  limit.

14
REVENUE LIMIT THE BASICS
1. Build Base from Prior-Year Data Sum ()
Prior-Year Oct 15 General Aid
Prior-Year Computer Aid Prior-Year
Levies for 10, 38, 41 Minus (-) Revenue
Limit Penalty Non-Recurring
Exemptions

1
14
2
13
3
12
4
11
5
Example () Prior-Year Oct 15 Aid
5,889,472 () Prior-Year Computer Aid
2,186 () Prior-Year Levy, Fund 10
1,399,134 () Prior-Year Levy, Fund 38
96,803 (-) Prior-Year Penalty
8,273 (-) Prior-Year Non-Recurring
315,000 (-) Prior-Year Decl Enroll
66,176 6,998,146
6
10
7
8
9
15
REVENUE LIMIT THE BASICS
2. Base 3-Year Membership Average - Current
Year (year you are computing) - Previous Year -
2nd Previous Year Base Average - 3rd
Previous Year (3rd Friday in September FTE, plus
40 of Summer School FTE)
1
14

2
13
3
12
4
11
5
6
10
7
8
9
Example Fall 2003857, Fall 2004848, Fall
2005834 Average 846
16
REVENUE LIMIT THE BASICS
1
14
3. Base Per-Member Divide the Base by the
3-year membership just computed to get a Base Per
Member.
2
13

3
12
4
11
Example 6,998,146 846 8,272.04
5
6
10
7
8
9
17
REVENUE LIMIT THE BASICS
1
14
4. Allowable Per-Member Increase The Per-Member
increase is determined by the State and applies
to all districts.
2
13
3
12

4
11
Example For the 2006-07 Revenue Limit, this
number was 256.93
5
6
10
7
8
9
18
REVENUE LIMIT THE BASICS
1
14
5. New Maximum Revenue Per Member Allowable
Per-Member Increase is added to the Base
Per-Member.
2
13
3
12
4
11
Example 8,272.04 256.93 8,528.97
5

6
10
7
8
9
19
REVENUE LIMIT THE BASICS
6. Current 3-Year Membership Average - Current
Year (year you are computing) - Previous
Year - 2nd Previous Year - 3rd Previous
Year (3rd Friday in September FTE, plus 40 of
Summer School FTE)
1
14
2
Current Average
13
3
12
4
11
5

6
10
7
8
9
Example Fall 2004848, Fall 2005834, Fall
2006815 Average 832
20
REVENUE LIMIT THE BASICS
1
14

• New Revenue Limit, No Exemptions
• New Maximum Revenue Per Member is multiplied by
  the Current 3-Year Membership Average.

2
13
3
12
4
11
5
Example 8,252.97 x 832 7,096,103
6
10

7
8
9
21
REVENUE LIMIT THE BASICS
1
14
8. Recurring Exemptions - Prior Year Carryover
(100) - Transfer of Service - Transfer of
Territory - Federal Impact Aid Loss - Recurring
Referendum to Exceed
2
13
3
12
4
11
5
6
10
7
8
9

Example 89,964
22
REVENUE LIMIT THE BASICS

• Transfer of Service
• New costs related to new transfer-in pupils in
  specified special education and limited English
  proficient programs may be eligible for a revenue
  limit exemption.
• - Student has moved into your district from
  another Wisconsin Public School or county
  Birth to 3 Program
• - Complete form on website
  http//www.dpi.state.wi.us/sfs/transerv.html
• - Involves getting verification of enrollment
  from transfer district
• - Keep track of eligible students get
  verifications throughout the year
• - Submit all verifications in one packet to DPI
  by July 1

23
REVENUE LIMIT THE BASICS
1
14
9. New Limit with Recurring Exemptions
2
13
3
Example 7,096,103 89,964 7,186,067
12
4
11
5
6
10
7

8
9
24
REVENUE LIMIT THE BASICS
1
14
10. Non-Recurring Exemptions - Non-Recurring
Referendum to Exceed - Declining Enrollment
Exemption - Other
2
13
3
12
4
11
5
Example 408,819
6
10

7
9
8
25
REVENUE LIMIT THE BASICS
14
1
11. New Revenue Limit with All Exemptions

2
13
3
12
4

11
Example 7,186,067 408,819 7,594,886
5
6
10
7
9
8
26
REVENUE LIMIT THE BASICS
1
14
12. October 15 Certification of General
Aid Shortly before each October 15, the State
certifies to each district an aid amount that
must be used in the Revenue Limit computation at
this point.
2
13
3
12

4
11
5
Example 5,853,198
6
10
7
9
8
27
REVENUE LIMIT THE BASICS
14
1

• Allowable Limited Revenue to Come From the Sum
  of
• - Fund 10 Levy
• - Fund 38 Levy
• - Fund 41 Levy
• - Computer Aid

2

13
3
12
4
11
5
6
10
7
9
8
Example 7,594,886 - 5,853,198 1,741,688
28
REVENUE LIMIT THE BASICS

14
1
14. At This Point, the District Determines the
Amounts for the Following - Fund 10 Levy
(General Operations) - Fund 38 Levy
(Non-Referendum Debt) - Fund 41 Levy (Capital
Expansion) - Computer Aid
2
13
3
12
4
11
5
6
10
7
9
8
Example Sum Must not Exceed 1,741,688
29
REVENUE LIMIT THE BASICS

• technically, we are done with the revenue limit
  levies however, we are not done with determining
  the total levy to be apportioned to the
  municipalities

15. District Determines the Amounts for the
Following Non-Controlled Levies - Fund 39 Levy
(Referendum Debt) - Fund 80 Levy (Community
Service) - Fund 10 Levy Chargeback
30
REVENUE LIMIT THE BASICS

• Total Levy
• - Fund 10 Levy (Operations)
• - Fund 38 Levy (Non-Referendum Debt)
• - Fund 41 Levy (Capital Projects)
• - Fund 39 Levy (Referendum Debt)
• - Fund 80 Levy (Community Service)
• - Fund 10 Levy Chargeback
• Computer Aid is NOT included in the total levy
  amount apportioned to the municipalities. It is
  an aid payment from the State.

31
Points to Remember About the Revenue Limit

• The revenue limit is a limit (or control) on the
  revenue a school district is entitled to receive
  from
• 1.) General State Aid
• (Equalization Aid)
• 2.) Local Levies (10, 38, 41)
• 3.) State Computer Aid
• This is about 70 - 90
• of your total Fund 10 budget.

32
Points to Remember About the Revenue Limit

• Does NOT control other sources of revenue such
  as
• - Referendum Debt Levy (Fund 39)
• - Community Service Levy (Fund 80)
• - Categorical Aids
• - Grants
• - Fees
• - Gate Receipts
• - Donations

33
Revenue Limit Computation Budgeting
Certain numbers from the Revenue Limit
computation, together with salary and other local
expenditure and revenue budget estimates, serve
as a guide for the district as it moves through
budget development, in particular, Fund 10.
34
REVENUE LIMIT




35
Using This Data for Budgeting

• Rev Lim Fund 10
• Line 18 Src 211
• Line 15C Src 212
• Line 12 Src 621
• Line 17 Src 691

(yellowed lines represent the amounts that come
from the controlled portion of the Revenue
Limit.)
36
The Big Picture
BOE Votes on levies. Certify Levies via PI-401
PC-401 (in portal)
Revenue Limit Calculation
3rd Friday Count, Oct 1 Tax Values, October 15
Aid
Annual Meeting?
Budget Planning Papers
Send tax bills. PI-1508
Budget Adjustments to BOE
Budget Report PI-1504
37
REVENUE LIMIT 2007-08
1
14
2
- Remember that any new year revenue limit
computation begins by using the prior-years aid
and levy data. - The districts 2007-08 Revenue
Limit begins with 2006-07 data. - To begin
building your 07-08 Revenue Limit, start with
step 1, using the 06-07 data as the prior year.
13
3
12
4
11
5
6
10
7
9
8
38
REVENUE LIMIT

• The most up-to-date Revenue Limit worksheets can
  be found on the School Financial Services
  website
• http//www.dpi.wi.gov/sfs/index.html
• Under
• Late Breaking
• Budget Development and Planning
• Worksheets DPI-Printed

39
BUDGET TIMELINE MODEL

• Adapt this timeline
• to your districts activities.
• Use at your discretion!!!!!
• Make sure you know your contractual obligations
  with regard to layoff notices.

40
Lets take a break!
dpi finance team
41
EQUALIZATION AID CALCULATION
42
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 its accurate and, if it
  changes, figure out why
• Because you may want to do estimates and what
  ifs

43
Equalization Aid - How It Works
Congratulations, its your lucky day! YOU ARE
ELIGIBLE FOR UP TO 10,000 IN COLLEGE
SCHOLARSHIP MONEY!!!(Not really. Well
eventually connect thisfake give-away to
Equalization Aid.)

44
Equalization Aid - How It Works
20
80
50
50
45
How Did the College Share in the Tuition?
What you could pay.
10,000 amount.
Compare, then
Compute actual scholarship amount.
46
Equalization Aid Formula

• State Shares in District Cost
• Aid is Based on a Districts Ability to Pay, as
  Measured by Property Wealth per Member

Basic premise The more property wealth per
member a district has, the less state aid it will
receive.
47
How Does the State Sharein District Costs?
State Guaranteed Value Per Member
District Value Per Member
Compare, then
Compute Equalized Aid
48
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.)

49
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. Known as
Shared Cost
50
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)

51
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)
52
Membership

• Who can you count for aid membership?
• Generally, residents for which you are
  financially responsible - i.e. you are paying for
  the students education.
• - Start with seat count.
• - 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.)

53
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

54
Value Per Member

• Crucial Statistic
• Value per Member
• Total Equalized Value Membership

55
Equalization Aid 3 Levels
Positive Tertiary Aid
District Value per Member


Negative Tertiary Aid
50
50


83
17
Negative Secondary Aid
Positive Secondary Aid
10
90


Positive Primary Aid
No Aid
56
Equalization Aid 3 Levels
Positive Tertiary Aid


Negative Tertiary Aid


Negative Secondary Aid
Positive Secondary Aid


Positive Primary Aid
No Aid
57
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

58
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

59
Equalization Aid Explaining Changes Across Time

• How can I explain changes in my districts aid?
• 7-Year History on the Website
• http//www.dpi.wi.gov/sfs/index.html
• Under
• Budget Development and Planning

60
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

61
Equalization Aid

• You dont have the data you need right now to
  make an accurate estimate of your 2007-08 aid
  its a State budget year, and the budget details
  will probably not be decided upon until the
  summer.
• Its to early for DPI to provide accurate
  guarantees.

62
Equalization Aid, Line 12 of the Revenue Limit
Worksheet

• On October 15, 2007 DPI will certify an amount to
  districts. It is the amount of aid the districts
  will receive in 2007-2008
• We will provide the required estimate shortly
  before July 1
• Place that amount on line 12 of the 2007-08
  revenue limit worksheet.

63

• Community Service Fund (Fund 80)

64
Community Service Fund

• The School Finance Team provides general guidance
  regarding community service fund activities based
  on our interpretation of the statutes.
• We advise districts to seek legal counsel should
  they question either the information or the
  interpretation.
• Disputes over community service fund activities
  are handled locally.

65
Community Service Fund

• The School Board establishes the fund per state
  statute 120.13(19)
• It must meet budget requirements per statute
  65.90
• If an operational levy is needed, it must be
  adopted at the annual meeting per statutes
  120.10(8) and 120.12(3). the levy is outside
  the revenue limit

66
Community Services Fund

• Key Point to Remember
• Community service activities and programs outside
  the districts regular and extracurricular
  programs for students.
• WI State Statute 120.13(19)

67
Community Service Fund Questions to Ask.

• Is the program outside the usual instructional
  timeframe?
• Is it open to everyone in the community? (age
  appropriate)
• Is it fee supported?
• Are costs directly related to the activity
  included?

68
Community Service Fund Questions to Ask.

• If you can say yes to all those questions, the
  program may be appropriate for inclusion in Fund
  80.

69
Common Community Service Fund Activities

• Recreational
• After-school swimming
• Softball basketball leagues
• Adult Education
• Community Library
• After School Day Care
• http//www.dpi.wi.gov/sfs/comm_serv.html

70

• SHORT TERM BORROWING

71
Short Term Borrowing

• PURPOSE
• Cash flow
• It can actually be for any legal purpose
• Be Careful!

72
Short Term Borrowing

• AUTHORITY
• Wisc. Stat. 67.12(8)
• An annual meeting must adopt levies
• DPI certification of revenues is not required

73
Short Term Borrowing

• AMOUNT
• Do a cash flow analysis
• It works like a revenue anticipation note
• Maximum - 1/2 of a districts revenue limit
• DPI notification is not required
• Do not report as long term debt!

74
Short Term Borrowing

• TERMS
• By two-thirds Board resolution
• When - anytime after levy adoption
• Due - November 1 of the year following the year
  of the loan
• Pay interest as charged by the lender
• It is NOT recorded as debt service in Fund 38 or
  Fund 39!

75
Short Term Borrowing

• ACCOUNTING
• Receive Principal - Increase Cash, Increase
  Balance Sheet 10B 811 100
• Repay Principal - Reduce Cash, Reduce Balance
  Sheet 10B 811 100
• Pay Interest Expense - Reduce Cash, Increase 10E
  283 000 682
• (record interest as of June 30th, if note is
  still outstanding)
• Receive Interest - Increase Cash, Increase Source
  10R 280

76
Short Term Borrowing

• RED FLAGS
• Borrow only what you need
• Beware of federal limitations (rules of
  arbitrage)
• Avoid tax money pledged to debt service
• Seek legal counsel

77

• Other Post Employment Benefits (OPEB)

78
Other Post Employment Benefits (OPEB)

• What is an OPEB?
• Compensation received after employment ends in
  exchange for the employees current service.
• Includes post employment healthcare benefits
  (i.e. medical, dental, vision, Rx)
• Implicit rate subsidies and retiree premiums
  based on blended active/retiree rates

79
OPEB

• When must a district implement the GASB
  statements?

• GASB 43
• Financial reporting for post employment benefit
  plans other than pension plans
• Phase 1 - June 30, 2007
• Phase 2 - June 30, 2008
• Phase 3 - June 30, 2009

• GASB 45
• Accounting and financial reporting by employers
  for post employment benefits other than pensions
• Phase 1 - June 30, 2008
• Phase 2 - June 30, 2009
• Phase 3 - June 30, 2010

80
OPEB

• How does OPEB affect a districts financial
  statements?

81
OPEB

• Resources
• Kathy Guralski 608-266-3862
• http//www.dpi.wi.gov/sfs/emp_benefit_trust_fund.
  html

82
Lunchtime!!!!!!!!
dpi finance team
83
Lets Talk About.

• Counting Students
• Days Hours of Instruction
• WUFAR
• Special Education
• Comparison Measures

84
Counting Students
85
Counting Students

• 3rd Friday in September Pupil Count
• 2nd Friday in January Pupil Count
• Summer School Report
• Youth Challenge Academy Pupil Count
• June Census

86
PI-1563 Pupil Count Report

• Two Count Dates
• September PI 1563 Pupil Count Report
• 3rd Friday in September
• January PI 1563 Pupil Count Report
• 2nd Friday in January
• (Districts may request a waiver to these dates
  as a result of school not being in session. New
  count date is usually the Thursday before or
  Monday after.)

87
General Counting Guidelines

• 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.
• So how do we get there

88
PI-1563 Pupil Count Process
89
Adjusted Head Count

• The adjusted head count is converted to full-time
  equivalency (fte) for both revenue limits and
  equalization aid.
• Incorrect data in the internet-based report will
  cause the fte for both revenue limits and
  equalization aid to be inaccurate. Data must be
  revised on-line.

90
Resources

• http//www.dpi.wi.gov/sfs/membrpt2.html
• General Count Instructions for the PI 1563
  Workbook
• PI 1563 Pupil Count Workbook Form for Draft Use

91
Summer School FTE

• Summer School starts the school year
• An Excel worksheet is available to calculate your
  Summer School FTE.
• http//dpi.wi.gov/sfs/summ_sch.html
• Keep the Excel spreadsheet as your auditor may
  need to review the information used to calculate
  your summer school fte.

92
Summer School

• The data on the front page of the Excel worksheet
  is reported to DPI on-line at the conclusion of
  summer school and is due in September.
• The summer school report is one of the few
  reports that ask for an fte count as opposed to a
  head count.

93
Youth Challenge Academy

• Wisconsin National Guard Challenge Academy is a
  residential program committed to improving the
  quality of life for 16 to 18 year old at-risk
  teens.
• School districts with cadets must contribute a
  portion of the costs of students enrolled in the
  Challenge Academy from their district.

94
Youth Challenge Academy

• State statute allows the school district to count
  the student, for revenue limit and equalization
  aid purposes, in the year in which the cadets
  attend the Academy
• Districts report students in both September and
  January
• Resources
• http//www.dpi.wi.gov/sfs/doc/challfunding.doc

95
FTE for Revenue Limit Purposes

• FTE generated from the PI-1563 pupil count report
  from September Count only
• FTE generated from the September Youth Challenge
  Academy Report
• 40 of FTE identified in the Summer School FTE
  report

96
FTE for Equalization Aid Purposes

• FTE generated from the PI-1563 pupil count report
  from September January pupil count reports.
• FTE generated from the September January Youth
  Challenge Academy Reports
• 100 of the FTE identified in the Summer School
  FTE report
• Adjustment for Part-time Private or Home-based
  Students
• Adjustment for certain foster/group home
  students.

97
On-Line FTE Reports
98
On-Line FTE Reports
99
Membership Audits

• A district may be selected to have a membership
  audit.
• During a membership audit, the district auditor
  will review the accuracy of the September,
  January, Summer, and Youth Challenge Count Reports

100
Membership Audits

• Criteria for District Selection
• Random Selection
• District audited in the prior year having a net
  error rate in excess of 1 from the reported
  membership, for either count date.
• The prior year January pupil count report was not
  received on time.

101
June Census

• All districts must report the number of residents
  that are at least 4 years old but not yet 21.
• HEAD COUNT not an FTE
• Ages 4-13 if in a K-8 district
• Ages 14-20 if in a high school district

102
June Census

• Per 120.18 Wisconsin Statutes - 2 methods
  available to calculate the census head count
• Conduct a Physical Census on June 30th -
  120.18(1)(a)1
• Generate a number based on a mathematical
  calculation - 120.18(1)(a)2.

103
June Census Why?

• The headcount entered into the census report is
  used to calculate the amount of common school
  fund (library) aid the district is to receive.
• The money the district receives should be spent
  within the same fiscal year. An aid estimate is
  given in January and paid in May.

104

• Days and Hours of Instruction

105
Days of Instruction

• 115.01(10) School Day. (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
• 2. Days on which school is closed by order of a
  local health officer, as defined in s. 250.01(5).

106
Days of Instruction Example

• The District schedules 178 days of actual
  instruction and 2 days of parent teachers
  conference days in lieu of a day of actual
  instruction.
• Does this meet the 180 day requirement? Yes
• What happens if the district has 4 inclement
  weather days? The District must make up the day
  or ask for a waiver.

107
Days of Instruction Example

• The District schedules 179 days of actual
  instruction and 2 nights of parent teacher
  conferences after the school day ends.
• Does this meet the 180 day requirement? No. A
  day may only be counted once. So if the students
  come in for instruction, the day is considered a
  face to face day. The evening parent conferences
  are not counted towards meeting the 180 day
  requirement. They may however, be counted as a
  day for your local teacher contract purposes.

108
Hours of Instruction

• 121.02(1)(f) Each school board shall annually
  scheduled at least
• 437 hours of direct pupil instruction in
  kindergarten (A school board operating a 4-year
  old kindergarten program may use up to 87.5 hours
  of the scheduled hours for outreach activities.)
• 1,050 hours of direct pupil instruction in grades
  1-6
• 1,137 hours of direct pupil instruction in grades
  7-12.
• A worksheet to calculate your districts annual
  hours of instruction is available at
• http//dpi.wi.gov/cal/days_hours_worksheet.html

109
Waiver for Days and Hours

• The school district may request a waiver to the
  days requirement. The request should be made to
• Michael George, Content and Learning
• [phone]
• michael.george_at_dpi.state.wi.us
• There is no waiver process for the hours of
  instruction.

110
WUFAR
111
WUFAR - 101

• Wisconsin Uniform Financial
• Accounting Requirements
• http//dpi.gov/sfs/wufar.html

112
WUFAR Structure

• WUFAR is a multi-dimensional reporting system
  that can also be used as an accounting system.
• Districts ARE NOT required to use the system for
  their accounting.
• BUT, every district IS required to report to DPI
  using the system (Budget and Annual Reports)

113
WUFAR Account Format

• Fund Location Object/ Function Project
• Source
• --------------------------------------------------
  -----
• XX XXX XXX XXXXXX XXX

flexibility
limited flexibility
114
Account Dimensions

• Fund
• Stand alone accounting entity
• Balance Sheet, Revenues, and Expenditures for
  each fund
• Within fund, Debits must equal Credits (the
  fund must be self-balancing)
• Change in fund balance equals difference between
  fund revenues and expenditures

115
Other Account Dimensions

• The Source dimension is used to classify revenues
  and other fund sources by their origins.
• The Object dimension is used to identify the
  service or commodity used in accomplishing a
  function.
• The Function describes the purpose for which a
  service or material object is acquired.

116
WUFAR

• The WUFAR Accounting Structure allows for
• Functional Costing
• Programmatic Costing

117
WUFAR Identifying Costs?

• Ex HS Music Program Expenses
• Instructional Expenses
• Staff Training
• Maintenance on Equipment
• Transportation

118
WUFAR Account Format

• Fund Location Object/ Function Project
• Source
• --------------------------------------------------
  -------------
• XX XXX XXX XXXXXX
  XXX

flexibility
limited flexibility
119
WUFAR Identifying Costs?
Fund Location-HS Object Function
Program-Music

• Instruction 10 -400 -xxx -125000-790
• Staff Trg. 10 -400 -342 -221300-790
• Maintenance 10 -400 -320 -254410-790
• Transport. 10 -400 -341 -256740-790
• -allows for both programmatic and functional
  costing-

120

• Special Education

121
Special Education Expense Coding

• All special education expenses, regardless of
  funding source must be accounted for in fund 27
• The function number and the project number are
  the most critical elements of the total account
  code

122
Special Education Expense Coding

• Function Number
• Identifies the special education program
• 152000 Early Childhood
• 158000 Cross Categorical
• 156600 Speech Language
• 159200 Substitutes

123
Special Education Expense Coding

• The Business Office and the Special Education
  Department will need to work closely together to
  ensure that staff members are being charged to
  the appropriate program or function.
• Appropriate staff licensure is important when
  assigning staff to various functions

124
Project Coding

• The key to identifying the correct project code
  is
• understanding that the project code identifies
  how the expense is to be ultimately funded.

125
Project Number 011

• Use this project on all original object 100 900
  expenditures when
• the LEA is using only local dollars to fund the
  expenditure (no grant money reimbursement)
• the expenditure is directly state special
  education categorically aidable

126
Project 011-Aidable Expense Example

• The school district incurs salary benefit
  expenses for an appropriately licensed Early
  Childhood teacher, funded w/ local dollars.
• Fund Object Function Project

27
100/200
152000
011
127
Project Number - 019

• Use this project on all original object 100-900
  expenditures when
• the LEA is using only local dollars to fund the
  expenditure (no grant money reimbursement)
• the expenditure is NOT directly state special
  education categorically aidable

128
Project 019-Non-Aidable Expense Example

• The school district purchases supplies for an
  early childhood program w/local dollars.
• Fund Object Function Project

27
410
152000
019
129
Project Number - 340

• Use this appropriate IDEA grant project code of
  341-349 on all original object 100-900
  expenditures when
• This expenditure is charged directly to an IDEA
  (flow-through, entitlement, etc..) grant.
• The LEA name on the grant is the same as this LEA.

130
Project 340 Grant Expense Example

• The LEA purchases supplies for an early childhood
  program that is reimbursed by grant dollars
  direct to this LEA.
• Fund Object Function Project

27
410
152000
340
131
Project Number - 599

• Use this project code on all original object
  100-900 expenditures when
• This expenditure is charged directly to a grant
  such as AODA, Drug Free, etc.
• The LEA name on the grant is the same as this LEA.

132
Project 599 Grant Expense Example

• The LEA purchases supplies for an early childhood
  program that is reimbursed by grant dollars
  direct to this LEA.
• Fund Object Function Project

27
410
152000
599
133
Project Number 315/317

• Use these projects, 315 (State) or 317 (Federal)
  on all original object 100-900 expenditures when
• The expenditure is then charged to a
  state/federal grant of another LEA
• The LEA name on the state/federal grant is
  another school district (NOT this LEA)

134
Project 315/317Grant Expense Example

• The LEA purchases supplies for an early childhood
  program that is reimbursed by another school
  district using federal grant dollars
• Fund Object Function Project

27
410
152000
317
135
Project Number 515/517

• Use these projects, 515 (State) or 517 (Federal)
  on all original object 100-900 expenditures when
• The expenditure is then charged to a
  state/federal grant.
• The LEA name on the state/federal grant is a
  CESA or a CCDEB, NOT this LEA

136
Project 515/517Grant Expense Example

• The LEA purchases supplies for an early childhood
  program that is reimbursed by a CESA or CCDEB
  using federal grant dollars
• Fund Object Function Project

27
410
152000
517
137
Project Number - 091

• Use this project on all original object 100-900
  expenditures when
• The LEA is using only local dollars to fund the
  expenditure (no grant money reimbursement)
• The expenditure is directly reimbursed by a
  payment from CESA (using CESA local dollars no
  grant money)

138
Project 091 CESA Package Program Example

• The host district of a CESA package program
  purchases supplies for an early childhood program
  that is reimbursed w/local dollars by CESA.
• Fund Object Function Project

27
410
152000
091
139
Project Number 092

• Use this project on all original object 100-900
  expenditures when
• The LEA is using only local dollars to fund the
  expenditure (no grant money reimbursement)
• The expenditure is directly reimbursed by a
  payment from a CCDEB (using CCDEB local dollars
  no grant money)

140
Project 092 CCDEB Package Program Example

• The host district of a CCDEB package program
  purchases supplies for an early childhood program
  that is reimbursed w/local dollars by a CCDEB.
• Fund Object Function Project

27
410
141
Special Education Categorical Aid

• Entities eligible to receive state special
  education categorical aid
• School Districts
• CESAs
• CCDEBs
• 2R Charter Schools

142
Special Education Categorical Aid

• Based on the information reported in the special
  education annual report, the districts special
  education categorical aid is calculated
• the aid is paid based on prior year aidable
  expenditures (aid paid in 2006-07 is based on
  expenditures from 2005-06)

143
Special Education Categorical Aid

• Categorical may be received either directly or
  indirectly
• Direct Your district receives aid directly from
  DPI as a result of an expense coded to an 011
  project
• Indirect Your district reimburses another
  entity for expenses that the other entity coded
  to an 011 project. The other entity transits
  your share of the aid to your district.

144
Special Education Categorical Aid

• Due to the high amount of eligible expenses, the
  amount of aid paid is prorated to approximately
  28.
• Aid is paid in multiple payments (Nov 15, Dec
  15, Jan 15, Feb 15, March 15, and June 25)

145
Special Education Categorical Aid on HOLD?

• What may cause categorical aid to be withheld on
  an individuals salaries and benefits
• No Valid License
• Inappropriate allocation of salaries/benefits to
  fund 27 for social workers, psychologists,
  nursing, and guidance

146
No Valid License

• No Valid License listing on June 30th
• Identifies staff not properly licensed for the
  teaching assignment listed on the PI 1202
• Auditor required to report to DPI salaries,
  benefits, and account structure (even in funds
  other than 27) for all individuals on the no
  valid license listing.

147
Allocation of salaries and benefits to fund 27

• Salaries and benefits of professionals working in
  both the regular education and special education
  areas must be allocated between fund 10 and fund
  27 based on time and costs
• School Social Worker
• School Psychologist
• School Nurses (Registered Nurses, licensed by WI
  Department of Regulation and Licensing)
• School Counselors

148
Special Education Fiscal Reporting

• Districts are required to submit both a special
  education budget and annual report that is
  currently separate from the full SAFR budget and
  annual report
• The special education budget/annual program is
  located on either a staff members individual
  hard drive or on a network drive within the
  district.

149
Special Education Fiscal Reporting

• The current special education budget/annual
  software program is outdated and can no longer be
  updated.
• As a result, you will find that updates to the
  WUFAR and changes to special education law can
  not be reflected in the current report.
  Alternative reporting is sometimes used.

150
Grant Payments Between Entities

• For entity that is not the grant holder
• Code expenses to the appropriate 315, 317, 515,
  517 project number
• When reimbursed by the other grant-holding
  entity, receipt the funds into the corresponding
  source (315, 317, 515, or 517)

Expenses Revenues Project 517 Expenses Source
517 Revenue
151
Grant Payments Between Entities

• For the district who is the grant-holder
• Code the reimbursement to the appropriate project
  (340 or 599)
• In the special education report, answer yes to
  paying another LEA for services from your grants,
  identify the entity, and the amount paid

152
Grant Payments Between Entities

• How does DPI verify grant payments between
  entities?
• Special Education Report Edit
• Verify the amount paid and reported by the
  reimbursing district is equal to the amount
  reported by the non-grant holding district in the
  appropriate 315, 317, 515, or 517 project lines.

153
Grant Payments Between Entities

• District A purchases Early Childhood supplies
  (100) that will ultimately be reimbursed by CESA
  using Flow-Thru Funds
• District A Expense 27E.xxx.410.152000.517 100
• District A Revenue 27R.517 100
• CESA Expense 27.E.382.431000.340 100
• Project 517 Expenses 517 Revenues Project
  340 Expenses

154
Grant Payments Between Entities Example

• On the special education report
• District A enters nothing but the expense in
  the appropriate account number
• CESA - answers yes to paying another LEA for
  services from a grant, identifies District A,
  and the amount paid (100)

155
Deductible Receipts

• What is a deductible receipt?
• A deductible receipt is created when an entity
  incurs an aidable expense (coded to project 011)
  that is ultimately reimbursed by another entity
  with grant funds.

156
Deductible Receipts

• How should entities report deductible receipts?
• The district incurring the original expense
  should
• Code the original expense with the appropriate
  project. (mostly likely 011 and 019)
• Code the reimbursement to the appropriate 315,
  317, 515, or 517 source code.
• In the special education report
• Answer yes to receiving deductible receipts,
  identify the entity, and the amount receipted
  (only the 011 amount)
• On the 27D line, enter the amount of 011 expenses
  that were reimbursed by another entity with grant
  funds

157
Deductible Receipts

• How should entities report deductible receipts?
• The district reimbursing the original expense
  with grant dollars should
• Code the reimbursement expense with the
  appropriate project. (mostly likely 340 or 599)
• In the special education report, answer yes to
  paying another LEA for services from their
  grants, identify the entity, and the amount paid

158
Deductible Receipts

• How does DPI verify deductible receipts?
• Special Education Report Edit
• Verify the amount paid and reported by the
  reimbursing district is equal to or less than the
  amount received and reported on the deductible
  receipt question and on the 27D lines by the
  entity incurring the original expense.

159
Deductible Receipt Example

• District A provides Early Childhood services to
  multiple districts. District Bs share of the
  program include salary (400), benefits (200),
  and materials (100). District B reimburses
  District A using federal grant money.
• District A Expense 27E.xxx.110.152000.011 400
• District A Expense 27E.xxx.2xx.152000.011 200
• District A Expense 27E.xxx.410.152000.019 100
• District A Revenue 27R.317 700
• District B Expense 27E.xxx.382.436000.340 700

160
Deductible Receipt Example

• On the Special Education Report
• District A
• Answers yes to did your district receive
  deductible receipts
• Identifies District B and the amount of the
  deductible receipt 600
• Enters 600 in 27D152000 000 011
• District B
• Answers yes to paying another LEA for services
  from a grant, identifies District A, and the
  amount paid (700)

161
Special Education Reporting Changes Ahead!

• The finance team is currently in the design phase
  of creating a new special education fiscal
  report.
• The goal is to integrate the fund 27 detail with
  the full SAFR Budget/Annual Report beginning with
  the 2008-09 SAFR Budget Report.

162
COST PER PUPIL THE OLD COMPARE GAME
163
Basic Per Member Costs

• Shared Cost comes from Fund 10, Fund
• 38, Fund 39
• Comparative School Costs 3 measures
• Current Educational Cost
• Total Education Cost
• Total District Cost
• http//www.dpi.wi.gov/sfs/cmprvcst.html

164
What is Shared Cost?

• Its calculated by taking the expenditures in
  Funds 10, 38 39 and subtracting deductible
  receipts
• Shared cost is one of the factors used in
  calculating a districts equalization aid.
• Shared Cost per Member is usually a smaller cost
  measure than others (no categorical aids, fees,
  etc.)

165
What is Comparative Cost?

• It is published by DPI on-line in the Basic
  Facts.
• http//dpi.wi.gov/sfs/basic.html
• It can be used to compare a districts cost with
  other districts.
• It itemizes costs into
• Current Educational Cost
• Total Education Cost
• Total District Cost

166
Comparative Cost

• Total Current Educational Cost (TCEC)
• This measure attempts to identify overall
  instructional and instructional support service
  costs attributable to district residents.
• Excludes transportation
• Excludes facility acquisition expenditures
• Excludes inter-fund transfers
• Excludes revenues for instructional services the
  district provides to non-resident pupils such as
  tuition receipts

167
Comparative Cost

• Total Education Cost (TEC) equals
• Total Current Educational Cost plus
• Transportation
• Expenditures for facility acquisitions charged to
  the General, Special Project, and Capital
  Expansion funds.
• Debt service principal and interest

168
Comparative Cost

• Total District Cost (TDC) equals
• Total Educational Cost plus
• Food Service costs (fund 50)
• Community Service costs (fund 80)
• (It should be noted that food and community
  service activities are usually funded with fees
  and other program revenue, requiring little or no
  property tax subsidy.)

169
Other Groupings

• There are many ways of showing specific
• revenues or expenses when presenting
• budget or annual reports to your Board.
• -function
• -object
• -source
• These reports reflect local practice and
• preference.

http//www2.dpi.state.wi.us/sfsdw/
170
Questions?

• Visit our web site
• http//dpi.wi.gov/sfs/index.html

171
Or call

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