SPRING FINANCE WORKSHOP Welcome

1
SPRING FINANCE WORKSHOPWelcome

• APRIL, 2007

2
Agenda

• 900-920 Introduction Works in Progress
• 920-1030 Whats New
• 1030-1045 Break
• 1045-1130 Accounting Issues
• 1130-1200 Needing Further Review

3
Oops!

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

4
Introductions

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

5
Introductions

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

6
Finance Team.Who We Are
7
Works in Progress

• We know communication is a problem, but the
  company is not going to discuss it with the
  employees.
• (ATT Long Lines Division)

8
WORKS IN PROGRESS

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

9
WORKS IN PROGRESS

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

10
WORKS IN PROGRESS

• Transfer of Service On-line
• Purpose Improve the collection and processing
  of Revenue Limit TOS Claims
• Use current process for 2007-08 claims
• New process for 2008-09 claims

11
WORKS IN PROGRESS

• OPEB Wizard
• Purpose A teaching and decision making tool
  for districts to use to understand and act upon
  the districts OPEB liability
• Tentative availability summer of 2007

12
WORKS IN PROGRESS

• Status and Deadlines Update
• Congratulations to districts with 100 on time
  reporting for 2006-2007!
• Handout report schedule for 2007-2008

13
WORKS IN PROGRESS

• Status and Deadlines Update
• Due date changes
• PI 1547 Transportation report from August 1 to ?
• PI 1505 Calendar from August 1 to ?
• Due date changes to begin with the collection of
  2007-08 data

14
WORKS IN PROGRESS
Wisconsins Longitudinal Data System (LDS)
Longitudinal data to support education decisions
15

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

16
Wisconsin LDS Activities

• Build data warehouse that integrates existing
  data collections repositories with increased
  analytical capability, especially on a
  longitudinal basis
• Deliver web-based tools and reports that allow
  for anytime, anywhere access to analytical data

17

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

18
The LDS team would like feedback
Contact Information Paul Sandrock,
608-266-3079 s.paul.sandrock_at_dpi.state.wi.us John
Calderone, 608-267-2272 john.calderone_at_dpi.state.
wi.us
19
WORKS IN PROGRESS

• Future Spring Finance Workshops
• The finance team posted the 2006 spring finance
  presentations as webcast presentations

20
WORKS IN PROGRESS

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

21
WORKS IN PROGRESS

• Future Spring Finance Workshops
• Advantages time and travel savings potential
  additional expanded presentations
• Disadvantages personal contact, time for
  questions
• Your thoughts?

22
Whats New Right Now

• This project is so important, we cant let
  things that are more important interfere with
  it.
• (Advertising Manager, UPS)

23
WHATS NEW RIGHT NOW

• Equalization Aid Analysis Tools
• Purpose help districts understand equalization
  aid eligibility
• Information found under District Budget
  Development and Planning
• ..if we knew what it was we were doing, it
  wouldnt be called research, would it? Albert
  Einstein

24
WHATS NEW RIGHT NOW

• Aid Revenue Limit FTE Reports
• Purpose communicate and ensure that district
  membership used in the aid and revenue limit
  calculations are accurate

25
WHATS NEW RIGHT NOW

• Aid Revenue Limit FTE Reports
• Fall of 2006 Districts SAFR home page
  included a membership calculation for the
  district to use in developing the 2006-07 revenue
  limit

26
WHATS NEW RIGHT NOW

• Aid Revenue Limit FTE Reports
• Spring of 2007 - Districts SAFR home page now
  includes an equalization aid membership
  calculation
• Districts are encouraged to review these
  calculations and contact the finance team with
  questions

27
WHATS NEW RIGHT NOW

• Shared Cost Modification (sort of)
• Second and final year of this law
• Resources
• Click on Webcast Presentations on teams
  website and District Budget Development and
  Planning
• District submits data on the PI 1505 AC report
  and verified by auditors on the PI 1506 AC

28
Shared Cost ModificationWhat should you do?

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

29
Shared Cost Modification What should you do?

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

30
Shared Cost Modification What should you do?

• On the 2006-07 PI 1505 AC report, in late summer,
  report your districts actual WRS payment.
• Provide your districts auditor with all
  documentation, including the board resolution.
• The Auditor will verify WRS payments on the PI
  1506 AC.
• The SFS team will adjust your districts shared
  cost at the time of the aid run.

31
Equalization Aid

• What I need is a list of specific unknown
  problems we will encounter
• (Lykes Lines Shipping)

32
Equalization Aid

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

33
Equalization Aid How It Works
Congratulations, 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.)

34
Equalization Aid How It Works
20
80
50
50
35
How Did the College Share in the Tuition?
What you could pay.
10,000 amount.
Compare, then
Compute actual scholarship amount.
36
Equalization Aid Formula

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

Basic premise The more property wealth per
member a district has, the less state aid it will
receive.
37
How Does the State Sharein District Costs?
State Guaranteed Value Per Member
District Value Per Member
Compare, then
Compute Equalized Aid
38
3 District Factors

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

39
1. District Factor - Costs(prior year)
Total General Fund (Fund 10) Expendituresplus
()Total Debt Service Funds (Funds 38 39)
Expendituresminus (-)all local misc. revenue,
grant revenue,and categorical aid (called
deductible receipts). Known as Shared Cost
40
2. District Factor - Wealth/Taxbase(prior year)

• Property Taxbase is Used to
• Determine Wealth and Ability to
• Support District Expenditures
• Uses Equalized Valuation
• or Fair Market Value
• (NOT Assessed Value)

41
3. District Factor - Membership(prior year)
Average of 3rd Friday F.T.E. - September 2nd
Friday F.T.E. - January plus () F.T.E. Summer
School

• F.T.E. full-time equivalent
• 2 halftime (.50) kdg students 1 F.T.E.

Summer School 48,600 minutes 1 F.T.E.
(2006-07 aid uses September 2005, January 2006,
and Summer 2005 numbers)
42
Membership

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

- Start with count of students in your seats.
- Add in your residents who are elsewhere
(and for which you are financially
responsible). - Subtract non-residents being
educated in your seats. (Double-check tuition
waiver situations and watch age limits.)
43
Membership

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

44
Value Per Member

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

45
Equalization Aid 3 Levels
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
46
Equalization Aid 3 Levels
Positive Tertiary Aid


Negative Tertiary Aid


Negative Secondary Aid
Positive Secondary Aid


Positive Primary Aid
No Aid
47
Equalization Aid

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

48
Equalization Aid

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

49
Equalization Aid Explaining Changes Across Time

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

50
Equalization Aid

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

51
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.

52
Revenue Limit

• We have no clue what we are doing here.
• (DPI Finance Team)

53
REVENUE LIMIT THE BASICS

• The Revenue Limit computation controls
• General Aid (for most districts, Equalization
  Aid)
• Computer Aid
• Local Property Taxes
• (These 3 comprise 70-90 of district revenue!)
• The Revenue Limit computation does not control
• School Fees
• Categorical Aids (Library Aid, Transportation
  Aid, etc.)
• State and Federal Grants
• Gate Receipts
• Donations
• Referendum Debt (Fund 39)
• Community Service Fund (Fund 80) Levies

54
REVENUE LIMIT THE BASICS
Revenue Limit Calculation

• Critical factors in the revenue limit calculation
  include
• Membership
• State Allowable Per-Pupil Increase
• Allowable Exemptions to the Limit
• The Revenue Limit computation contains data
  elements that may change during the budgeting
  cycle. Remember to update your Revenue Limit
  Calculation and budget planning documents as new
  information is received throughout the year.

Budget Planning Papers
55
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
9
8
56
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
57
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
Example 6,998,146 846 8,272.04
11
5
6
10
7
8
9
58
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
Example For the 2006-07 Revenue Limit, this
number was 256.93
11
5
6
10
7
8
9
59
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
Example 8,272.04 256.93 8,528.97
11
5

6
10
7
8
9
60
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
61
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
Example 8,252.97 x 832 7,096,103
11
5
6
10
Aggregate

7
8
9
7,096,103
62
REVENUE LIMIT THE BASICS
1
14
8. Recurring Exemptions (permanent) - 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
Example 89,964
7
8
9

63
REVENUE LIMIT THE BASICS
1
14
9. New Limit with Recurring Exemptions
2
13
Example 7,096,103 89,964 7,186,067
3
12
4
11
5
6
10
7

8
9
Aggregate
Line 7 7,096,103 Line 8 89,964
64
REVENUE LIMIT THE BASICS
1
14
10. Non-Recurring Exemptions (for a period
of time) - Non-Recurring Referendum to
Exceed - Declining Enrollment Exemption -
Other
2
13
3
12
4
11
5
Example 408,819
6
10

7
9
8
65
REVENUE LIMIT THE BASICS
14
1
11. New Revenue Limit with All Exemptions
2
13
Example 7,186,067 408,819 7,594,886
3
12
4
Aggregate

11
Line 7 7,096,103 Line 8
89,964 Line 10 408,819
5
6
10
7
9
8
Line 11 is the amount of revenue limit resource
(aid levy) that is available to fund budget
initiatives. (other resources include grants,
etc.)
66
REVENUE LIMIT THE BASICS
1
14
12. October 15 Certification of General
Aid Shortly before each October 15, DPI
certifies to each district an aid amount that
must be used in the Revenue Limit computation at
this point. The Aid Certification is subtracted
from Line 11 to get the maximum Allowable Limited
Revenue that can come from the combination of
Funds 10, 38, 41 Levies and Computer Aid.
2
13
3
12

4
11
5
6
10
7
9
8
Example 5,853,198
67
REVENUE LIMIT THE BASICS

• Allowable Limited Revenue to Come From the Sum
  of
• - Fund 10 Levy (General Operations)
• - Fund 38 Levy (Non-Referendum Debt)
• - Fund 41 Levy (Capital Expansion)
• - Computer Aid

14
1
2

13
3
12
4
11
Example 7,594,886 - 5,853,198 1,741,688
5
6
10
Aggregate
7
9
8
Line 7 7,096,103 Line 8
89,964 Line 10 408,819
Subtract
Aid Cert 5,853,198
Allowable Limited Revenue 1,741,688
68
REVENUE LIMIT THE BASICS
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

14
1
2
13
3
12
4
11
5
6
10
Example Sum Must not Exceed 1,741,688
7
9
8
Lines 14 13 are compared to determine if you
have over-levied and will be assessed a Revenue
Limit Penalty.
69
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
• The district now adds the
• non-controlled amounts.

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
70
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.

71
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
72
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.)
73
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
74
REVENUE LIMITthe rest of the story

• I am willing to make the mistakes if someone
  else is willing to learn from them

75
REVENUE LIMIT THE ANALYTICS

• Observing how Line 11 changes from year to year
  will help you explain to your constituents the
  effect of the Revenue Limit on your budget!
• (See 7-Year History under
• Budget Development and Planning on website.)

76
REVENUE LIMIT THE ANALYTICS

• Lets focus on Line 7.
• Incorporates effects from the
• per-pupil increase AND changes in membership.
• v The amount of the per-pupil increase will
  impact how much or how little the revenue limit
  increases.
• v A large drop in the current-year revenue
  limit membership may offset any increase
  generated by the per-pupil amount.
• So, how does this work?

77
REVENUE LIMIT THE ANALYTICS

• District 1 (increasing enrollment)
• 05-06 06-07
  Change
• Line 7 41,044,480 44,187,510
  3,143,030
• Line 6 (Cur 3-Year Memb) 4,812
  5,029 217
• Line 5 (New Per-Pupil) 8,786.54

• Change Detail
• from Per-Pupil Increase 256.93 X 4,812
  1,236,347
• from Memb 217 x 8,786.54 1,906,679
• 3,143,026

78
REVENUE LIMIT THE ANALYTICS

• District 2 (declining enrollment)
• 05-06 06-07
  Change
• Line 7 5,802,789 5,557,846
  -244,943
• Line 6 (Cur 3-Yr Memb) 703
  653 -50
• Line 5 (New Per-Pupil) 8,511.25

• Change Detail
• from Per-Pupil Increase 256.93 X 703
  180,622
• from Memb -50 x 8,511.25 -425,563
• -244,941

79
REVENUE LIMIT THE ANALYTICS

• District 3 (stable enrollment)
• 05-06 06-07
  Change
• Line 7 55,008,000 56,641,818
  1,633,818
• Line 6 (Cur 3-Year Memb) 6,359
  6,359 0
• Line 5 (New Per-Pupil) 8,907.35

• Change Detail
• from Per-Pupil Increase 256.93 X 6,359
  1,633,818
• from Memb 0 x 8,907.35 0
• 1,633,818

80
REVENUE LIMIT THE ANALYTICS
81
REVENUE LIMIT THE ANALYTICS

• Membership Revenue Limit Attributable
• Change Change Change Factor

• Increase Increase Membership
• Per-Pupil Incr

• Stable (flat) Increase Per-Pupil Incr

• Decrease Increase/Decrease Membership
  Per-Pupil Incr

82
Accounting Issues

• Email is not to be used to pass on information
  or data. It should be used only for company
  business.
• (Accounting Manager, Electric Boat Company)

83
ACCOUNTING ISSUES

• Fund 60 Audit Guidelines
• Year End Reporting Changes
• SAFR Edits
• Other Post Employment Benefits
• Special Education

84
Fund 60 Agency Accounts

• Agency accounts may contain both
• student activity accounts
• parent organization accounts
• Decentralized nature of activity funds makes them
  vulnerable to error, misuse, and fraud, resulting
  in audit risk

85
Fund 60 Suggested Audit Procedures

• Verify the Board of Education has approved the
  student activity or parent organization in fund
  60.
• Purpose of the club
• Proposed fund raising activities

86
Fund 60 Suggested Audit Procedures

• For parent organizations, verify the
  organization
• is not a 501c3 or affiliated with a separate tax
  exempt organization
• is subject to the same policies and procedures as
  other district funds
• is using a bank account that is in the same name
  as the district
• is not using the districts tax exempt number
  issued by the Department of Revenue

87
Fund 60 Suggested Audit Procedures

• Verify that a signed copy of the board policy for
  each activity selected is on file and contains
  procedures for
• receipt and disbursement of funds
• inactive student activity accounts
• misappropriation of funds
• negative activity account balances
• prohibition of loans, credit, or compensation, to
  school employees or other individuals.

88
Fund 60 Suggested Audit Procedures

• Produce a schedule of cash activity for each
  account for the year.
• Confirm all bank balances and reconcile to the
  ledger balances.
• Select a sample of disbursements and receipts to
  test for appropriate processing and
  documentation.

89
Fund 60 Suggested Audit Procedures

• For questions regarding fund 60 audit guidelines,
  contact a school finance auditor.
• View the actual suggested audit procedures at
• http//dpi.wi.gov/sfs/pdf/student_activity_funds.
  pdf

90
Year End Reporting Changes

• WUFAR
• PI 1506AC
• SAFR Annual Report

91
WUFAR SAFR Annual

• Gift money may be reported in both fund 10 and 21
  for the 2006-07 SAFR annual report.
• Fund 21 - the gift will not be fully expended in
  the year in which it is received.
• Fund 10 - the gift will be fully expended in the
  fiscal year in which it is received.

92
WUFAR SAFR Annual

• Gift Money
• Districts reporting gift money in fund 10 may be
  asked on the annual report to certify all funds
  have been expended.
• If the funds have not been expended, the
  unexpended amount must be reclassified to fund 21.

93
WUFAR SAFR Annual

• New Wisconsin Promise Funds
• Check is given directly to the schools rather
  than being sent to the district office.
• Funds should be receipted to source 291 (fund 10
  or 21)

94
PI-1506AC SAFR Annual

• Auditors will be required to report on the
  PI-1506AC
• fund balances by category (reserved, designated,
  unappropriated)
• All long-term debt balances including capital
  lease balances
• Communication between the district and the
  auditor is very important.
• PI-1506AC SAFR Audited Financial Statements

95
SAFR Annual

• Elderly Food Service Error
• The costs for the elderly food service program
  must be covered by elderly meal charges and
  elderly food service aid.
• Any deficit generated by the elderly food service
  program must be covered by an operating transfer
  from the community service fund 80.

96
SAFR Annual

• Elderly Food Service Error
• The error will generate when
• Aid Register reports project 545
• 50B-931459-002 zero
• 50R 411000 180 zero

97
SAFR Annual

• Beginning Accounts Receivable Balances (715000
  001 Addendum)
• Beginning receivable balances will be
  pre-populated based on the amount the district
  reported in the prior years annual report.
• If the districts actual receivable differs from
  the projected, the difference should be
  identified as an other source.

98
SAFR Annual
36,800.00
7.29
99
Other Post Employment Benefits

• Approximately 80 districts have set up a trust
  and are currently authorized to use fund 73
• http//dpi.wi.gov/sfs/emp_benefit_trust_fund.html
• - Fund 73 requirements
• - Letter to districts regarding fund 73
• - OPEB financial transaction accounting
• - Fund 73 audit program
• - WI Act 99
• - OPEB Webcasts

100
Other Post Employment Benefits

• A contribution to a trust may be made at anytime,
  but must be physically made by June 30th to be
  accounted for in that same fiscal year ending
  June 30th.
• On the flip side, a contribution may only be
  pulled from the trust when the OPEB expense has
  been incurred.

101
Other Post Employment Benefits

• Creation of and contributions to a trust imply
  intent to fund, to some degree, an OPEB
  liability.
• Districts should not make a contribution and pull
  out that same contribution, leaving the trust
  with a zero balance at year end. (accounting
  shell)
• Trust balance guidelines for categorical aid
  eligibility are under development.

102
Other Post Employment Benefits

• Districts with trusts (Fund 73) have additional
  annual meeting (budget hearing for unified)
  reporting requirements.
• Amount in the trust
• Investment return earned since last annual
  meeting
• Total of disbursements made since last annual
  meeting
• Name of investment manager if investment
  authority has been delegated

103
Other Post Employment Benefits

• For questions regarding OPEB, contact
• Kathy Guralski at [phone]
• Lori Ames at [phone]
• http//dpi.wi.gov/sfs/emp_benefit_trust_fund.html

104
Special Education

• Common Errors in the Special Education Annual
  Report
• Spec Ed Annual SAFR Annual Report
• Grant payments and expenses between entities do
  not equal.
• Deductible receipts are not identified

105
Spec Ed Annual SAFR Annual
Function total out of balance
106
Spec Ed Annual SAFR Annual
Object Total out of Balance
107
Grant Payments Between Entities

• Example Assumptions
• 3rd party grant scenario
• District A incurs the original expense to be
  reimbursed
• District B is the grant holder
• Federal flow-thru grant

108
Grant Payments Between Entities
District A Receipts Reimbursement-Source 317
109
Grant Payments Between Entities

• On the special education report
• District A enters nothing but the expense in the
  appropriate account number, project 317
• District B answers yes to paying another LEA
  for services from a grant, identifies District A,
  and the amount paid

District A Project 317 District A Source 317
District B Object 340
110
Grant Payments Between Entities

• Example Assumptions
• 3rd party grant scenario
• District A incurs the original expense to be
  reimbursed
• CESA is the grant holder
• Federal flow-thru grant

111
Grant Payments Between Entities
District A Receipts Reimbursement-Source 517
112
Grant Payments Between Entities

• On the special education report
• District A enters nothing but the expense in the
  appropriate account number, project 517
• CESA answers yes to paying another LEA for
  services from a grant, identifies District A, and
  the amount paid

District A Project 517 District A Source 517
CESA Object 340
113
Special Education Report

• For DPI to pay state special education
  categorical aid, we need to be able to
  distinguish between expenses that are aidable
  and expenses that are not aidable.
• Expenses coded to project 011 are considered
  aidable.

114
Special Education Report
27.000.211.152000.011
27.000.386.436000.019
27.000.550.218100.517
27.000.110.152000.011
27.000.310.221300.340
27.000.410.221300.599
27.000.410.156600.317
27.000.212.152000.011
27.000.220.152000.011
27.000.310.156600.515
115
Deductible Receipt

• 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.

116
Deductible Receipt

• Why does DPI care about deductible receipts?
• DPI should not pay special education categorical
  aid on an aidable expense (coded to project 011)
  that has been reimbursed with state or federal
  grant funds.

117
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

118
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)

119
Deductible Receipt-Open Enrollment

• District A serves the student and bills District
  B.
• District B pays with local funds only
• Flat Rate no deductible receipt
• Additional Cost no deductible receipt

120
Deductible Receipt-Open Enrollment

• District A serves the student and bills District
  B.
• District B pays with grant funds
• Flat Rate no deductible receipt
• Additional Cost deductible receipt for the
  portion of the additional cost originally charged
  by District A to an 011 project number.

121
Special Education Categorical Aid

• Categorical aid 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 with local funds for expenses that the
  other entity coded to an 011 project. The other
  entity transits your share of the aid to our
  district.

122
Special Education Tuition Billings

• Districts should be billing tuition at gross cost
  (not netting the amount of expected categorical
  aid against the gross cost)
• In the following year, the district will receive
  the special education categorical aid and transit
  the aid to any tuition paying entities.

123
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 Budget Report.

124
Needing Further Review

• If I wanted that report tomorrow I would have
  waited until tomorrow to ask for it!
• (New Business Manager, Hallmark Greeting Cards)

125
NEEDING FURTHER REVIEW

• Transfer of Service
• Common School Fund
• Summer School FEES
• School Calendar Days/Hours of Instruction
• Community Service Fund
• Legislative Update

126
Transfer of Service

• the Finance Team is endeavorily determined to
  promote constant attention on current procedures
  of transacting business focusing emphasis on
  innovative ways to better, if not supersede, the
  expectations of quality!....

TOS Form è
127
Transfer of Service

• What Transfer of Service is
• a recurring exemption to the revenue limit
• based on WI Stat. 121.91(4)(a)
• an increase on the local tax levy

128
Transfer of Service

• What Transfer of Service does
• helps the district cover unexpected costs for
  incoming Spec Ed/ESL transfers without permanent
  impact on their budgets
• helps the district cover the cost of new
  operation expenses that were once provided by
  another municipality

129
Transfer of Service

• What Transfer of Service is not
• a payment from the State
• a payment from another school district

130
Transfer of Service

• What Transfer of Service is not
• a program to amortize any existing special
  education expenses
• an automatic reduction in revenue limit for the
  former servicing district

131
Eligible Transfer of Service Exemptions

• New costs related to pupils in specified special
  education and limited English proficient
  programs.
• Unless the pupil was being served by another
  governmental unit, such as a county birth to 3
  program, the pupil must be a new resident of
  the district.
• If the pupil has moved in from another Wisconsin
  Public School, documentation is needed to verify
  that the service provided to the new pupil was
  also provided at the previous public school
  district.

132
Eligible Transfer of Service Exemptions

• What about pupils that enroll from home based
  private education (home schooling)?
• Not eligible
• What about pupils that enroll from a private
  school?
• Not eligible
• What about pupils that enroll from another
  Wisconsin public school district?
• Probably eligible but you need program
  verification
• What about pupils that enroll from out of state?
• Probably eligible and you dont need verification

133
TOS Timeline

• If a Pupil becomes a resident member of the
  school district at any time during the school
  year, the district may be eligible for a TOS
  exemption.
• In other words, your district is now fiscally
  responsible for providing the pupils educational
  program.
• The open enrollment law might confuse the issue
  rule of thumb - if, after moving into your
  district, they remained in their previous
  district under the open enrollment law, determine
  the year you actually started paying tuition to
  that district.

134
TOS Process

• Submit all transfer of service exemption requests
  at one time.
• Near the end of the school term but before June
  30th.
• Do not send duplicates unless attached to
  original
• This is sometimes done when original cant be
  easily read
• Not more than one mailing for each category
• Must be complete
• Must have program and enrollment verifications
• if required - you should be getting verifications
  now

135
TOS Process

• Before submitting in June
• Check forms for accuracy and completeness
• Check to see that the information provided in the
  verification section (Part B) will allow for the
  approval of the exemption request.
• Note It is the requesting districts
  responsibility to make sure the request,
  including the Part B verification is complete and
  accurate.
• Do a final check of the cost estimate and, if
  necessary, correct before submission.
• The completed forms must be at the DPI before the
  July 1st deadline. (Monday July 2nd will be OK
  this year.)

136
TOS Process

• After July 1st
• DPI will check forms for proper verification and
  completeness with signatures
• Comparisons of dates of withdrawal and enrollment
• Need explanation if dates dont make sense
• Approvable programs identified dont make up a
  new category
• Questions answered appropriately
• Adjustments might be made for expected
  categorical aid
• Results will be posted on the finance team web
  page
• Go to the Transfer of Service link

For additional information and for forms, go to
the finance team web page at http//dpi.wi.gov/sf
s/
137
TOS Process

• Be prepared to be able to demonstrate that the
  request was for actual NEW costs and not an
  amortization of existing costs.
• Further explanation might be requested if new
  costs cant be found in Budget and/or Annual
  Reports

For additional information and for forms, go to
the finance team web page at http//dpi.wi.gov/sf
s/
138
Common School Fund aka Library Aid

• What is the Common School Fund?
• It is one of the State Trust Funds managed by
  the Board of Commissioners of Public Lands
  (BCPL). The net earnings of the Common School
  Fund is distributed as Library Aid each year to
  public school districts for the purchase of
  school library materials.

139
Common School Fund

• When do districts receive this Library Aid?
• The Board of Commissioners of Public Lands sends
  an estimate of the Common School Fund Library Aid
  to the state superintendent. DPI informs school
  districts of their individual Library Aid
  allocation in January. The final allocation
  amount is determined and payments sent to school
  districts by May 1.

• When must the Common School Fund Library Aid
  allocation be spent?
• The entire allocation must be spent by June 30
  of the school year in which it was received.

140
Common School Fund

• How is the Common School Fund money to be spent?
• WUFAR Function 222000 Object Codes
• Audiovisual materials 431
• Library books 432
• Newspapers 433
• Periodicals 434
• Instructional software 435
• Microfilm 438
• Other Media 439

141
Common School Fund

• The Department annually verifies that the full
  amount of the common school library funds have
  been spent. Districts may receive an inquiry if
  it appears funds may go unspent.
• For more information go to
• http//dpi.wi.gov/sfs/comsch.html

142
Summer School
PI 1804 Summer School Form
March 2004 Summer school Transportation letter
February 2007 Summer School Letter
143
Summer School - Fees

• Summer school is included as part of a districts
  membership audit.
• The auditor will test that the FTE computation is
  done correctly.
• The auditor will review and question fees.
• Fees are becoming more and more questionable.

144
Summer School - Fees
There shall be no cost to the resident student or
parent beyond individual use supplies (towels,
gym clothes, band instruments, notebooks,
pencils), and textbooks or similar items
(workbooks) if the district claims state aid
under s. 121.14, Wis. Stats. This includes fees
for transportation, shuttling, and food and
lodging for off-campus activities. Items for
which fees are charged must be legally permitted
and actually purchased for summer school use.
145
Summer School - Fees
If the class is not aided, required, or credited,
fees may be charged but must be based upon the
actual cost of the class. Summer school fees may
not be used to subsidize other classes or
students.
146
Summer School - Fees
School boards may establish and collect
reasonable fees for social, recreational or
extracurricular summer classes and programs which
are neither credited toward graduation nor
eligible for state aid s. 118.04 (4). School
boards may also provide and charge for
transportation for extracurricular activities
such as school athletic contests, school games,
after school practice, late activity, school
outings or extracurricular school field trips s.
121.54 (7). Such activities are not eligible for
state aid or categorical aid under current law.
147
Summer School Reminders/Clarifications

• The summer school Question and Answer document
  should be reviewed and is available on our DPI
  web site. This document, as well as the PI-1804
  and PI-1804-W can be found at
• http//dpi.wi.gov/sfs/summ_sch.html
• Auditor information regarding summer school
  audits can be found at
• http//dpi.wi.gov/sfs/auditorqanda.html
• General summer school questions may be directed
  to Nancy Mueller at 608-266-8938
  (nancy.mueller_at_dpi.state.wi.us)
• Questions concerning financial reporting should
  be directed to Brad Adams at 608-267-3752
  (bradley.adams_at_dpi.state.wi.us).

148
Days and Hours of Instruction--The Law

• Each school board shall
• 121.02(1)(f) 1. Schedule at least 180 school days
  annually, less any days during which the state
  superintendent determines that school is not held
  or educational standards are not maintained as
  the result of a strike by school district
  employees
• 121.02(1)(f) 2. Annually schedule at least 437
  hours of direct pupil instruction in
  kindergarten, at least 1,050 hours of direct
  pupil instruction in grades 1 through 6 and at
  least 1,137 hours of direct pupil instruction in
  grades 7 to 12. Scheduled hours under this
  subdivision include recess and time for pupils to
  transfer between classes but do not include the
  lunch period.

149
School Day--The Law

• 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 during the school term.
• Days on which school is closed by order of a
  local health officer, as defined in s. 250.01(5).
  
• Not to exceed 5 Saturdays may be counted as
  school days in any school year when school is
  taught thereon with the consent of the school
  board.

NOTE Districts cannot count as two days toward
the 180 day requirement a situation in which
students attend school during the day with
parent/teacher conferences in the evening of the
same day.
150
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?
• What happens if the district has 4 inclement
  weather days?

Yes

• The District must make up the day or ask for a
  waiver.

151
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.
152
School Day--The Law State aid withheld

• 121.006(2)(a) State aid withheld. Hold school
  for at least 180 days each year, less any days
  during which the state superintendent determines
  that school is not held or educational standards
  are not maintained as the result of a strike by
  school district employees, the days to be
  computed in accordance with s. 115.01(10).

153
Hours of Instruction--computing
For questions about this information, contact
Beverly J. Kniess [phone] Or the DPI
Content and Learning Team http//dpi.wi.gov/cal/
154
Fund 80

• We still get a number of questions about
  districts establishing a Community Service Fund
• District and their communities determine the
  appropriateness of the community service fund
• Guidelines as the DPI interprets the statutes and
  intent of the legislation are provided

Community Service Fund Information
http//dpi.wi.gov/sfs/comm_serv.html
155
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.

156
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

157
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)

158
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?

159
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.

160
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

161
Governors 2007-09 Biennial Budget Overview

• before you criticize someone, walk a mile in
  their shoes. That way, if they get angry, theyre
  a mile away and barefoot

162
Governors Biennial Budget Overview

• Provide roughly 450 million over the 2007-09
  biennium in new general equalization and
  categorical school aids and tax credits for K-12
  education.
• Repeal a school districts authority to avoid
  binding arbitration by offering a Qualified
  Economic Offer (QEO) to its employees.
• Increase funding for six existing categorical aid
  programs and create five new categorical aid
  programs.
• Provide additional revenue limit flexibility for
  school districts for declining enrollment, low
  revenue, school safety, and initial mentors.

163
School Finance-General Equalization Aids

• General Equalization Aids
• Increase general equalization aids by 235.4
  million over the biennium. Annually, the
  Governors budget will provide 79.3 million in
  2007-08 and an additional 156.1 million in
  2008-09 (over the 2006-07 base year).
• These figures represent a 1.7 increase in
  2007-08 and an additional 1.6 increase in
  2008-09.
• The Governors budget does not propose any
  changes to the existing general equalization aid
  formula, or for integration or special adjustment
  aid.

164
School Finance-Existing Categorical Aids

• Special Education Aid-Increase funding by 53.6
  million over the biennium (17.4 million in
  2007-08 and 36.2 million in 2008-09). These
  figures represent a 5.2 increase in 2007-08 and
  an additional 5.4 increase in 2008-09 and are
  estimated to increase the states share of
  special education costs from 28 to 29 by
  2008-09.
• SAGE-Increase funding by 21.3 million over the
  biennium (10.4 million in 2007-08 and 10.9
  million in 2008-09). This proposal will increase
  the state reimbursement rate from 2,000 per
  eligible low-income pupil to 2,250 per pupil.
  The proposal includes funding to allow additional
  schools to join SAGE in 2008-09.

165
School Finance-Existing Categorical Aids

• Bilingual-Bicultural Aids-Increase funding by
  3.1 million (1.1 million in 2007-08 and 2.0
  million in 2008-09) to maintain state
  reimbursement rate of bilingual costs for
  eligible districts at 12 annually.
• School Breakfast Grants-Increase funding by 3.3
  million (1.5 million in 2007-08 and 1.8 million
  in 2008-09) to increase state school breakfast
  reimbursement rate to all pupils in public and
  private schools from 10 to 15 cents.
• School Library Aids-Increase funding by 17
  million (6 million in 2007-08 and 11 million in
  2008-09) based on a reestimate of available