ACCOUNTING TRANSACTIONS http:www'dpi'wi'govsfswufar'html Kathy Guralski Wisconsin Department of Publ

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ACCOUNTING TRANSACTIONShttp//www.dpi.wi.gov/sfs
/wufar.htmlKathy GuralskiWisconsin Department
of Public Instruction
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COOPERATIVE AGREEMENT 66.0301

• MULTIDISTRICT PROJECTS WITH COOP AGREEMENT
• ONE DISTRICT ACTS AS FISCAL AGENT
• MAINTAIN REVENUE AND EXPENDITURE RECORDS
• FISCAL AGENT AGREEMENT STRONGLY ENCOURAGED
• IDENTIFIES RESPONSIBILITIES OF BOTH THE FISCAL
  AGENT AND INDIVIDUAL GRANT RECIPIENTS

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COOP TRANSACTION CODING

• FISCAL AGENT AGREEMENT
• http//dpi.wi.gov/sfs/coop_agree.html

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COOP TRANSACTION CODING (Cont.)

• FUND 99
• OTHER THAN SPECIAL EDUCATION
• REVENUES MUST EQUAL EXPENDITURES
• COST PRORATED TO PARTICIPATING DISTRICTS
• FISCAL AGENT PORTION TRANSFERRED FROM FUND 10

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Fund 27 - Whats up with that??

• Fund 27 is where revenues expenses related to
  special ed are recorded.
• Fund 27 acts like a sub fund to Fund 10
  (general operations).
• Fund 10 must always make a balancing entry in the
  form of a transfer to Fund 27 at the end of the
  year.
• Fund 27 must have a 0 ending fund balance.

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Fund 27 (cont.)

• Fund 27 identifies Special Education Costs.
• A portion of these eligible costs are reimbursed
  with a categorical aid.
• A categorical aid is State aid that is intended
  for a specific purpose.

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How do I claim Special Ed Aid?

• Fund 27 has its own annual claim
• It is reported by a program installed on district
  computer and sent via e-mail to DPI
• Aid eligible and Non-aidable costs are
  identified

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How am I supposed to know what WUFAR codes to use
in Fund 27???????

• DPI has published Directions for
• State Categorically Aidable
• Special Education Costs in
• Fund 27 and Special Education
• Claim. This is available at http//www.dpi.wi.g
  ov/sfs/se_report.html

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Special Education Aid Provided to School
Districts, CESAs, CCDEBs

• Early Childhood
• Hearing impairment
• Homebound instruction
• Speech /language
• Visual impairment
• Hospital instruction
• Combined Cost
• Cross-categorical
• Cognitive disability
• Learning disability
• Orthopedic impairment
• Emotional behavior disability
• School age parents

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SPECIAL EDUCATION

• License tied to appropriate function
• Short term substitutes
• Any valid license, coded to 159200
• Long term substitutes
• Same license as teacher, same function as teacher
• Assistant
• Aide license or any license but must have a
  license
• Social Worker, Guidance, Psychologist, OT, PT
  substitutes
• Appropriate license even for short and long term
  substitutes

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SPECIAL EDUCATION ACCOUNT CODING (Cont.)

• PROJECT CODES USED TO IDENTIFY HOW EXPENDITURES
  ARE FUNDED
• STATE CATEGORICAL AID
• GRANT PROGRAM AIDED
• CHARGED TO CESA FOR PACKAGE PROGRAM EXPENSES
• NONE OF THE ABOVE

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SPECIAL EDUCATION PROGRAMS

• Many different types of special education
  programs
• PROGRAM OPERATED BY THE DISTRICT (DISTRICT
  EMPLOYS PERSONNEL)
• PROGRAM OPERATED WITH A CONSORTIUM OF SCHOOLS
• PROGRAM OPERATED BY CESA
• PROGRAM OPERATED BY CCDEB
• Costs funded by a combination of state, local and
  federal dollars

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FUND 27COOP TRANSACTION CODING

• FUND 27
• MULTIDISTRICT PROGRAM FOR SPECIAL EDUCATION
• FISCAL AGENT DISTRICT INCURS ALL EXPENDITURES
• MUST HIRE STAFF
• FISCAL AGENT DISTRICT BILLS PARTICIPATING
  DISTRICTS FOR TOTAL COST OF PROGRAM

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COOP TRANSACTION CODING (Cont.)

• FUND 27
• FISCAL AGENT DISTRICT FILES CATEGORICAL AID CLAIM
• SPECIAL EDUCATION AID RECEIVED BY FISCAL AGENT
  DISTRICT
• FISCAL AGENT DISTRIBUTES AID TO PARTICIPATING
  DISTRICTS
• FISCAL AGENT PORTION REMAINS IN FUND 27

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Special Education Issues3rd-Party Federal Grant
Coding - District

• District A

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Special Education Issues3rd-Party Federal Grant
Coding - District

• Note the similarity between the project code in
  the expenditure and the source code in the
  revenue.
• This coding methodology translates to other
  transits Use project 517 to code expenditures
  for a Federal Grant Transited from a CESA. When
  the revenue for this grant is received from CESA,
  code into Source 517.

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Special Education IssuesCoding Refresher

• Refer to Handout in Your Packet
• For the Coding Refresher

• 1.) I am buying supplies for my EC teachers
  classroom. How do I code this?

Answer is found in 2h of handout. 27E 152000 411
019
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Special Education IssuesCoding Refresher

• 2.) I received some revenue from an IDEA
  flow-thru grant? How do I code this?

Answer is found in 1b of handout then, it
depends on who you are receiving the grant
from District 27R 000000 730 341 CESA 27R
000000 517 Another District 27R 000000 317
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Special Education IssuesCoding Refresher

• 3.) I am purchasing workbooks for a
  hearing-impaired classroom that is funded by an
  IDEA flow-thru grant? How do I code this?

Answer is found in 2i of handout then, it
depends on who you are receiving the grant
from District 27E 156100 472 341 CESA 27E
156100 472 517 Another District 27E 156100 472
317
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Special Education IssuesCoding Refresher

• 4.) I received State Handicapped Aid from DPI.
  Now, I need to make an expenditure to transit a
  portion back to another district. How do I code
  this?

Answer is found in 2b of handout. 27E 491000 936
019
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Special Education IssuesCoding Refresher

• 5.) I need to pay our Speech/Language teachers
  salary/benefits. How do I code this?

Answer is found in 2g of handout. 27E 156600
100/200 011
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Special Education Issues

• Purchased service from a CESA
• Similar coding
• May have a host District (District hires staff)
• http//www.dpi.wi.gov/sfs/wufar_cesa.html

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Special Education IssuesIdea Flow-Thru Part B
Funds

• Effective in 2005-06, districts are allowed to
  spend up to 15 of their IDEA Part B funds to
  develop and implement coordinated, early
  intervening services for students who have not
  been identified as students with disabilities
  under IDEA. (Special Education Plan)
• Additional information on the 15 provision is
  located at the following link
• http//dpi.wi.gov/sped/doc/grt-15percent.doc

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Special Education IssuesIDEA Flow Thru Part B
Funds

• Expenditures associated with the 15 provision
  require a special project code when claiming
  reimbursement on the PI 1086
• 85 of Expenses (IEP-related) 85,000 341
• 15 of Expenses (non IEP) 15,000 344
• Total IDEA Part B Funds 100,000

Project Code
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Special Education IssuesIDEA Flow Thru Part B
Funds

• Report Project
• PI 1086 (claim) 341, 344
• PI 1505 SE (Annual/Budget) 340
• PI 1505 (SAFR Annual)
• PI 1504 (SAFR Budget)

No Project Required
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Special Education

• Nursing and Guidance
• Wisconsin State Statute 115.88 has recently been
  amended to include the additional following staff
  whose costs are eligible for reimbursement
  school nurses (Registered Nurses (RNs), licensed
  by the Wisconsin Department of Regulation and
  Licensing not Licensed Practical Nurses (LPNs))
  and for school counselors (license 54) for aid
  paid in 2006-2007.

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Methods of Allocation

• http//www.dpi.wi.gov/sfs/ltrjan12_06.html
• Applicable to school psychologists, social
  workers, nurses and guidance counselors.
• Districts may elect to use a different method for
  each staff member. Which ever method is used, it
  must reflect a rational and defensible method of
  allocation of costs.

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PURCHASED INSTRUCTIONAL SERVICES (FUNCTION 430
000)

• INSTRUCTIONAL SERVICES PROVIDED RESIDENT DISTRICT
  BY OTHER ENTITIES
• LINKED WITH A 300 PURCHASE SERVICE OBJECT
• NON-INSTRUCTIONAL SERVICES CHARGED TO APPROPRIATE
  200 000 FUNCTION WITH 300 OBJECT

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MEDICAID SBS SERVICES

• PROVIDED TO CHILDREN WITH DISABILITIES (SPECIAL
  EDUCATION)
• COST IN SPECIAL EDUCATION FUND (27)
• REVENUE IN GENERAL FUND (10)
• CANNOT CHARGE MEDICAID COSTS AGAINST FEDERAL
  GRANT FUNDS
• NOT A DEDUCTIBLE FOR STATE CATEGORICAL SPECIAL ED
  

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SAFR Annual Report Edits

• The two most frequently-encountered challenges
  in the SAFR Annual Report are
• 1.) reporting grant receivables
• 2.) long-term debt errors

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Grant Receivables

• 1 challenge on the Annual Report
• When a grant reimbursement claim is submitted
  BEFORE the end of the fiscal year, but the actual
  cash wont be received until AFTER the start of
  the new fiscal year, a grant receivable needs to
  be booked in the ledger.

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Grant Receivables

• Why do it this way?
• In accrual accounting, revenue is recognized when
  it is earned. By submitting the reimbursement
  claims in June, the district earns the money in
  the 05-06 school year, so the claims need to be
  booked as revenue in 05-06 however, since the
  actual cash will not come until the 06-07 school
  year, a receivable is used to account for the
  expected cash.

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Grant Receivables

• Example
• Title I-A 05-06 reimbursement claim for 26,493
  is completed and sent to DPI on June 29.

05-06 EOY Adjusting Entry (both increases) Debit
10B-715000-002 Due from Oth Govnts 26,493
Credit 10R-000000-751 IASA Title 1
26,493
06-07 Entry When the Cash Comes Debit
10B-711000-001 Cash 26,493 (increase)
Credit 10B-715000-001 Due from Oth Govnts
26,493 (decrease) (So, 06-07 revenue is not
effected at all by this transaction, which is
what we want because this amount was already
booked as revenue in 05-06!)
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Grant Receivables

• When completing grant reimbursements, remember
  that the end-of-year receivables from your grant
  claims will need to be entered into the Annual
  Report Addendum. Be sure to group receivables
• by Source code for this entry.
• For example..

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Grant Receivables

• Numerous 05-06 Fund 10 Source 730 grant claims
  completed and sent to DPI on June 29.
• ? Title II-A (5,506) Source 730
• ? Title V-B (2,605) Source 730
• ? Title IV-A (4,215) Source 730
• .but, only one 05-06 EOY Adjusting Entry (both
  increases)
• Debit 10B-715000-002 Due from Oth Govnts 12,236
• Credit 10R-000000-730 Fed Spec Proj 12,236

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Grant Receivables

12,236
26,493
1,267
40,086
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Grant Receivables
Remember to keep the fund separate!
One 05-06 Fund 27 grant claim completed and sent
to DPI on June 29 Flow-Through (3,569) Source
730 05-06 EOY Adjusting Entry (both
increases) Debit 27B-715000-002 Due from Oth
Govnts 3,569 Credit 27R-000000-730 Fed Spec
Proj 3,569
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Grant Receivables

3,569
3,569
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Grant Receivables

• July 1, 2005 July 1, 2006

04-05
05-06
06-07
?Submit 04-05 grant claims. ?Book 04-05 revenue
in appropriate Source and end-of-year 04-05
receivable in 715000-002.
?Submit 05-06 grant claims. ?Book 05-06 revenue
in appropriate Source and end-of-year 05-06
receivable in 715000-002.
Receive 05-06 cash early in 06-07 fiscal year
(shows up on 06-07 aids register)
Receive 04-05 cash early in 05-06 fiscal year
(shows up on 05-06 aids register)
Annual Report edit Annual Report entry should
equal the Aids Register amount minus the
beginning-of-the-year receivables (04-05 revenue)
plus the end-of-year receivables (05-06 revenue).
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Schedule of Federal and State Awards

• Receivables and revenues per District filed
  Annual Report should agree to Schedules of
  Federal and State Awards
• Data Collection Form should also agree

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REPORTING REFINANCING TRANSACTIONS
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BACKGROUND

• EQUALIZATION AID IS CALCULATED USING SHARED COST
• A MAJOR COMPONENT OF SHARED COST IS DEBT SERVICE
  COSTS (PRINCIPAL AND INTEREST)
• REFINANCING TRANSACTION COSTS ARE NOT PART OF
  SHARED COST EVEN THOUGH REPORTED IN THE DEBT
  SERVICE FUND

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WHAT IS A REFUNDING/REFINANCING?

• LONG-TERM DEBT ISSUED IN PRIOR YEARS IS PAID OFF
  AND REPLACED BY NEW DEBT HOLDING A LOWER INTEREST
  RATE
• BOND ANTICIPATION NOTES (BANS) ARE PAID OFF
• PAYOFF OF WRS PENSION LIABILITY

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WHERE ARE REFINANCING TRANSACTIONS RECORDED?

• RECORDED IN FUND 38 OR FUND 39
• FUNCTION 282000 ONLY
• SHARED COST IS NOT AFFECTED

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WHAT ENTRIES ARE REQUIRED ON THE BOOKS?

• REVENUE IS RECORDED EQUAL TO THE PAR AMOUNT OF
  THE NEW ISSUE (SOURCE 873,874, OR 875)
• EXTRA CASH RECEIVED BY THE DISTRICT IS CODED TO
  SOURCE 968
• REFINANCING EXPENDITURES ARE CODED TO FUNCTION
  282000

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ENTRIES (CONTD)

• THE SUM OF SOURCE 870S IN FUND 38 AND 39 SHOULD
  AGREE WITH FUNCTION 282000 IN FUND 38 AND 39
• IF THEY DONT, CONTACT GENE FORNECKER AT
  608-267-7882

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ENTRIES (CONTD)

• SAMPLE REFINANCING ENTRIES
• Balance of bond refinanced - 5,775,000
• Principal amount of the bonds issued to refinance
  - 5,920,000
• Cash received - 4,408.03
• Fund 39
• Dr. Object 675 Function 282000 5,775,000.00
• Dr. Object 690 Function 282000 145,000.00
• Dr. Cash 4,408.03
• Cr. Source 875 5,920,000.00
• Cr. Source 968 4,408.03
• To record issuance of refunding bonds at par
  value and receipt of cash

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WHAT HAPPENS IF DEBT SERVICE EXPENDITURES ARE
CODED INCORRECTLY?

• SHARED COST MAY BE CALCULATED INCORRECTLY,
  RESULTING IN WRONG AID BEING PAID TO DISTRICT
• DISTRICTS ANNUAL REPORT DEBT TABLE WILL NOT
  RECONCILE FROM BEGINNING TO END OF YEAR

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FUND 21 - GIFTS

• Gifts specified by donor to be used for operating
  purposes (playground equipment, school nurse,
  beautification of grounds)
• Includes both expendable and non-expendable
  portion
• No longer allowable in fund 10 but allowable in
  21,27,29,38,39,49,50,72,80,99
• http//www.dpi.wi.gov/sfs/wufar.html

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FUND 73EMPLOYEE BENEFIT TRUST FUND

• Resources held in trust for formally established
  defined benefit pension plans, defined
  contribution plans, or employee benefit plans.
  Such plans must be legally established in
  accordance with state statutes, federal laws and
  IRS requirements. Specific requirements for use
  of this fund have been established by the DPI at
  http//www.dpi.wi.gov/sfs/emp_benefit_trust_fund.h
  tml

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FUND 73EMPLOYEE BENEFIT TRUST FUND

• Must have on file with DPI
• Actuary study or allowed alternative method
• Board minutes approving establishment of a trust
• Trust agreement
• Legal opinion on the trust

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FUND 73EMPLOYEE BENEFIT TRUST FUND

• Trust must be irrevocable
• Contribution to the trust must be used for
  purpose trust is established
• Reported as an expenditure by district and is
  included in shared cost

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COMMODITY HANDLING CHARGES

• Prior to 2005-06, this charge was collected from
  districts via a check or cash transaction
• New in 2005-06, the charge is deducted from the
  federal food service aid district receives

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COMMODITY HANDLING CHARGES

• Aids register
• Federal food service aid is reported at gross
  amount
• Commodity handling charge is reported as a
  negative amount (titled 714)
• Accounting
• Federal Food Service Aid Source 717
• Commodity Handling Charge Function 257000,
  Object 387

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COMPENSATED ABSENCES

• Compensated absences are generally in the form of
  vacation, sick leave or earned comp time.
• No expenditure is recognized on the books of the
  District when the absence is earned and
  accumulated. Rather, compensated absences are
  accounted for as expenditures in the fiscal
  period in which they are paid.
• It is accounted for in the same manner as the
  regular wage paid for the pay period.
• If compensated absences are paid by lump-sum
  settlement to a former employee, they should be
  accounted for under function 290000, object 290
  Other Employee Benefits.

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SALE OF SCHOOL PROPERTY

• Statute 120.10(12) states that the school board
  has the power to authorize the sale of any
  property belonging to and not needed by the
  school district.
• Generally recorded in Fund 10 under source 860
• District may choose to place the revenue in
  another fund but only if so designated at the
  districts annual meeting