Commonwealth Payments

1
Commonwealth Payments Reporting Process
PASBO 51st Annual Conference March 2006

• Presented by
• Anita Butcher Jonathan Hollenbach
• Staff Accountant Staff Accountant
• School Finance Division School Finance
  Division
• Labor, Education and Community Services
  Labor, Education and Community Services
• Comptrollers Office Comptrollers
  Office
• Voice [phone] Voice [phone]
• Facsimile [phone]
  Facsimile [phone]
• E-mail abutcher_at_state.pa.us E-mail
  joholleba_at_state.pa.us

2
What services are provided by the Labor,
Education and Community Services (LECS)
Comptrollers Office?

• The LECS Comptrollers Office provides accounting
  and audit services to three agencies.
• The Department of Education
• The Department of Labor and Industry
• The Department of Community and Economic
  Development
• The LECS Comptrollers Office performs a dual
  function in carrying out their responsibilities
  and duties.
• First, on behalf of the Secretary of the Budget,
  they are to ensure that appropriation commitment
  and spending does not exceed the Governors
  established budget, and that all funds
  administered by agencies are expended and
  accounted for properly.
• Second, they are the chief financial accounting
  officers of the agencies served. As such, they
  are a valuable resource to agency heads and
  agency staff concerning matters relating to
  financial and service contracting policies and
  procedures.
• Third, Section 1501 of the Fiscal Code assigns
  explicit authority to LECS Comptrollers Office
  for approving and disapproving requisitions for
  payments drawn on the Treasury Department.

3
What Divisions within LECS process payments to
School Districts?

• Federal Subsidies Division
• Document Review and Control
• School Finance Division

4
The Division of School Finance is part of what
organization?

• The Office of the Budget,
• Comptroller Operations

5
Is the Office of the Budgeta division of the
Department of Education?

• No, it is a separate agency. The Labor,
  Education and Community Services (LECS)
  Comptrollers Office is separate for the purpose
  of providing checks and balances within the state
  government.
• School Finance is just a facet of the
  Comptrollers Office, that also includes Federal
  Accounting, an Audit Division, Special
  Accounting, General Accounting, Document Review
  and Control, Administration, and Labor Industry
  Federal Accounting.

6
Are all State Subsidy payments processed by the
School Finance Division?

• No!
• Federal Accounting processes Project payments and
  Food Service Reimbursement Claims.
• Document Review and Control processes State
  Subsidy Payments and Early Intervention.

7
Where can I go to find information on payments?

• Through the Financial Accounting Information
  (FAI) system
• User registration request via ePDE Web Portal
• ePDE help desk [phone].
• Penn-Link notifications of payments, as well as,
  deductions.
• Yearly document packet sent in June

8
What information can I obtain from FAI?

• Project Information
• Quarterly Reconciliation of Cash on Hand
• Payment Detail Information (10 year history)
• Audit Confirmation Reports
• Account Coding for Payments

9
What information can I obtain from the LECS
Comptrollers Office Website?

• The LECS Website Address iswww.pde.state.pa.us/Sc
  hool_Acct
• Forms, Instructions and Procedures
• Payment Schedules
• Bank Deposit Change Forms
• Access Services to the ePDE Web Portal
• Accounting Guidance
• Annual Financial Report
• Manual of Accounting
• Tuition Rates

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It is our goal to have you find the content of
our webpage informative and easy to navigate.
Any suggestions you may have will be gladly
accepted at 00comptroll_at_psupen.psu.edu
11

• What is a Unipay?
• A Unipay is an accumulation of School Finance
  payments all processed and transferred at the
  same time in a given month.
• The Unipay is paid on the last Thursday of each
  month. If this day happens to be a holiday, the
  payment will be transferred on the previous day.
• The June 1st Unipay will pay on June 1st, or the
  first business day preceding the 1st.

12
What programs are processed by the School
Finance Division that are NOT included with the
Unipay?

• Social Security payments are paid on the
• first Thursday of each month.
• School Employees Retirement payments are paid
  quarterly, around the middle of the month.
• (September, December, March, and June).
• I.U. Nonpublic Services (Aug 1st, Oct 1st, Feb
  1st)

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Month Treasury Payment Date
January - Unipay 01/26/2006February
Non-Public 02/01/2006February
Unipay 02/23/2006March Unipay
03/30/2006April Unipay 04/27/2006May
Unipay 05/25/2006June 1st Unipay
06/01/2006June Unipay 06/29/2006Ju
ly Unipay 07/27/2006August Non-Public
08/01/2006August Unipay
08/31/2006September Unipay 09/28/2006October
Non-Public
9/29/2006October Unipay
10/26/2006November Unipay 11/30/2006December
Unipay 12/28/2006
2006 Unipay Schedule
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• 2006 Social Security Schedule
• Month Treasury Payment
  Date
• January 01/05/2006
• February 02/02/2006
• March 03/02/2006
• April 04/06/2006
• May 05/04/2006
• June 06/01/2006
• July 07/06/2006
• August 08/03/2006
• September 09/07/2006
• October 10/05/2006
• November 11/02/2006
• December 12/07/2006

15
2006 Retirement Schedule

• Month Treasury Payment
  Date
• March 03/16/2006
• June 06/16/2006
• September 09/18/2006
• December 12/18/2006

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What payments do the School Finance Division
process, and when can LEAs expect Major State
Subsidy Payments?
Programs School Code Payment Date
Approved Private Schools/ PA Charter Schools 1376.1 Monthly
Authority Rental Sinking Funds 2574 and 2575 Upon Application
Basic Education Funding 2502.xx Aug, Oct, Dec, Feb, Apr, June 1st
Reimbursement for Charter School Expenses 2591.1 Aug, Oct, Dec, Feb, Apr, June1st
PA Accountability Grants 2599.2 July
Drivers Education 2504.1 Upon Application
Education of Indigent Children 2502.2/2509.2 Upon Application
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What payments do the School Finance Division
process, and when can LEAs expect majorstate
subsidy payments? (Continued)
Program School Code Payment Date
Homebound Instruction 2510.1 June
Incarcerated Education 1306.2(c) Oct, Mar and June
IU Nonpublic Services 972.1A(d) Aug 1st, Oct 1st, Feb 1st
IU Operating 968 July and January
IU Special Education 2509.1 Aug, Nov and June
IU Transportation 2509.1 Aug, Jan and June
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What payments do the School Finance Division
process, and when can LEAs expect majorstate
subsidy payments? (Continued)
Program School Code Payment Date
Licensed Practical Nursing 2507 Sept, Dec, Mar and June
Nonpublic Schools Transportation 2509.3 December June
Payments in Lieu of Taxes 604 April
Private Residential Rehabilitative Institutions 964.1 Aug (adv), Bal due pd upon final audit
School Improvement Grants 1709B Upon Application
School Employees Social Security 24 PA C.S. 8329 Monthly
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What payments do the School Finance Division
process, and when can LEAs expect majorstate
subsidy payments? (Continued)
Program School Code Payment Date
School Employees Retirement 24 PA C.S. 8535 Quarterly
Education Assistance Program 1512-C Upon Application
Special Education 2509.xx Jul, Sept, Nov, Jan, Mar June
Transportation 2543 Aug, (Sept, Oct, Nov based upon receipt of prior yr reports), Dec, March and June
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What payments do the School Finance Division
process, and when can LEAs expect majorstate
subsidy payments? (Continued)
Programs School Code Payment Date
Tuition for Orphans and Children Placed in Private Homes 1305 / 1306 June
Vocational Education 2517c Aug, Oct, Dec, Feb, April and June 1st
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What is the Basic Education Funding Payment
Schedule?

• Payment Schedule
• August Estimated current year gross allocation
  minus estimated deductionstimes 15 percent.
• October Same as August
• December Estimated current year gross allocation
  minus estimated deductionstimes 15 percent
  minus IU Operating deduction.
• February Same as August and October
• April Same as August, October and February
• June 1 Basic Education Funding Formula by State
  Law.
• Total gross allocation minus deductions (if
  applicable) equals adjusted gross allocation.
  This amount minus first five (5) payments minus
  deductions (current year deductions and prior
  year adjustments) equals the final payment.
• Estimated deductions 110 percent of prior
  year IU Transportation, IU Institutionalized
  Children, PRRI, Approved Private Schools, and
  Scranton Scotland school tuition deductions
  (exception change in law affecting deduction
  calculations)

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Monthly Payment Cycle

• July
• Approved Private Schools
• Authority Rental and Sinking Funds
• Community Colleges
• Intermediate Unit Operating
• School Employees Social Security
• Special Education
• PA Accountability Grant
• August
• Approved Private Schools
• Authority Rentals and Sinking Funds
• Basic Education Funding
• Community Colleges
• Intermediate Unit Transportation
• Intermediate Unit Special Education
• Nonpublic School Services
• Private Residential Rehabilitative Institutes
• Reimbursement for Charter School Expenses
• School Employees Social Security

• September
• Approved Private Schools
• Authority Rentals and Sinking Funds
• Licensed Practical Nursing
• PA Charter Schools
• Private Residential Rehabilitative Institutes
• Pupil Transportation
• School Employees Social Security
• School Employees Retirement
• Special Education
• October
• Approved Private Schools
• Authority Rentals and Sinking Funds
• Basic Education Funding
• Incarcerated Education
• Nonpublic School Services
• PA Charter Schools
• Pupil Transportation

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Monthly Payment Cycle

• November
• Approved Private Schools
• Authority Rentals and Sinking Funds
• Intermediate Unit Special Education
• PA Charter Schools
• Pupil Transportation
• School Employees Social Security
• Special Education
• December
• Approved Private Schools
• Authority Rentals and Sinking Funds
• Basic Education Funding
• Community Colleges
• Education Assistance Program
• Improvement Grants
• Incarcerated Education
• Licensed Practical Nursing
• Pupil Nonpublic Transportation
• School Employees Social Security

• December
• Reimbursement for Charter School Expenses
• PA Charter Schools

• January
• Approved Private Schools
• Authority Rentals and Sinking Funds
• Intermediate Unit Operating
• Intermediate Unit Transportation
• PA Charter Schools
• School Employees Social Security
• Special Education
• February
• Approved Private Schools
• Authority Rentals and Sinking Funds
• Basic Education Funding
• PA Charter Schools
• Nonpublic School Services
• Private Residential Rehabilitative Institute
• Reimbursement for Charter School Expenses

24
Monthly Payment Cycle

• February
• School Employees Social Security
• Vocational Education
• Education Assistance Program
• Incarcerated Education

• April
• Approved Private Schools
• Authority Rentals and Sinking Funds
• Basic Education Funding
• Education Assistance Program
• PA Charter Schools
• Payment in Lieu of Taxes
• Reimbursement for Charter School
  Expenses
• School Employees Social Security
• Vocational Education

• March
• Approved Private School
• Authority Rentals and Sinking Funds
• Community Colleges
• Education Assistance Program
• Licensed Practical Nursing
• School Employees Social Security
• School Employees Retirement
• Pupil Transportation
• Special Education
• Vocational Education(Adult Travel)
• Reimbursement for Charter School Expenses
• PA Charter Schools

• May
• Approved Private Schools
• Authority Rentals and Sinking Funds
• Education Assistance Program
• Intermediate Unit Transportation
• PA Charter Schools
• School Employees Social Security
• June 1st
• Basic Education Funding
• Intermediate Unit Special Education
• Vocational Education
• Reimbursement for Charter School Expenses

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Monthly Payment Cycle

• June
• Approved Private Schools
• Audit Adjustments/Subsidy Revisions
• Authority Rentals and Sinking Funds
• Community Colleges
• PA Charter Schools
• Drivers Education
• Extraordinary Special Education Contingency
• Homebound Education
• School Improvement Grants
• Licensed Practical Nursing
• Payment in Lieu of Taxes
• Public and Nonpublic Transportation
• School Employees Social Security
• School Employees Retirement
• School District Special Education
• School District Transportation
• Tuition for Orphans and Children Placed in
  Private Homes

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I have received the funds, now how should I
record them?
You will receive a payment letter and/or
deduction letter via PennLink roughly one week
before each payment. It will include
instructions on the correct revenue codes to use.
It is important that you SAVE THESE LETTERS for
audit purposes.
The following page lists common Revenue Codes and
Program Area Codes. Program Area Codes can also
be found listed with each payment on the FAI
system.
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• REVENUE PROGRAM CODES
  2005-2006 FISCAL YEAR
• REVENUE
  PROGRAM REVENUE
  PROGRAM
• DESCRIPTION CODE
  CODE DESCRIPTION CODE CODE
• REIMBURSMENT OF CS 7140 793 ACT 30
  PRRI 7299 595
• ACCOUNTABILITY GRANTS 7501 547 OOS SP ED REIMB
  (APS) 7271 599
• COMM COLLEGE 530 APPR PRIV SCH 596
• TUITION TRANSFER 6944 531 APPR PRIV SCH
  ADJ 6991 996
• INCARCERATED ED 6944 532 HOMEBOUND 7210 605
• AID DISTRESSED SD 7110 533 HOMEBOUND
  ADJ 7210 606
• INCARCERATED REV 6944 534 HOMEBOUND BAL
  DUE 7210 607
• BASIC ED FUNDING 7110 535 ED INDIGENT
  CH 7160 615
• BAS ED FUND BAL DUE 7110 539 IU SEC
  1306 7160 623
• REPAYMENT OF LOAN 541 SEC 1305
  1306 7160 624
• BASIC ADJ 7110 941 SEC 1305 1306
  BAL 7160 626
• ACT 30 PRRI 7299 536 SEC 1305 1306
  ADJ 7160 924
• PRRI DEDUCT ADJ 6991 944 IN LIEU OF
  TAXES 6114 625
• SECTION 2564 (TUIT DUE) 6944 537 IMPROVEMENT
  GRANT 7170 637

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DEDUCTION DESCRIPTIONS AND CODES