WASBO New School Administrators & Business

Support Staff WorkshopAugust, 2007

Wisconsin Wisconsin Department of Department of

Public InstructionPublic Instruction

ACCOUNTINGACCOUNTINGTRANSACTIONSTRANSACTIONS

WUFAR 101 WUFAR 101 WWisconsin isconsin UUniform Financial niform Financial

AAccounting ccounting RRequirementsequirements

It is a multi-dimensional reporting system that can also be used as an accounting system

Not required accounting, but required reporting

Always used in conjunction with the Budget and Annual Reports

Download off website http://dpi.wi.gov/sfs/wufar.html

WUFAR Account WUFAR Account FormatFormat

Fund Location Object/ Function Program/

Source Project

---------------------------------------------------------------- XX XXX XXX XXXXXX

XXX

Most of the commercial software used in districts will display account codes in this order. In DPI reporting you will see the function number preceding the object or source. DPI reporting does not require location detail.

Wisconsin Uniform Financial Wisconsin Uniform Financial Accounting Requirements - Accounting Requirements - cont.cont.

Code numbers are arranged in hierarchical order. A zero (0) in any position of a code represents a total of more detailed account codes.

The following is an example of a hierarchy in the source dimension:Fund Function Description 10R 000000 210 Taxes10R 000000 240 Payment for Services10R 000000 260 Non-Capital Sales10R 000000 270 School Activity Income10R 000000 280 Earnings on Invest10R 000000 290 Other Local Sources10R 000000 200 Total Local Revenue

Wisconsin Uniform Financial Wisconsin Uniform Financial Accounting Requirements – Accounting Requirements – contcont

Code numbers are arranged in hierarchical order. A zero (0) in any position of a code represents a total of more detailed account codes.

The following is an example of a hierarchy in the expenditure dimension:

Fund Function Description 10E 120000 100 Salaries10E 120000 200 Employee Benefits10E 120000 300 Purchased Services10E 120000 400 Non-Capital Objects10E 120000 500 Capital Objects10E 120000 900 Other Objects10E 120000 000 Total Regular Curriculum

FUND:FUND: A fiscal and accounting entity with A fiscal and accounting entity with

a self-balancing set of accounts…a self-balancing set of accounts…which are segregated for the which are segregated for the purpose of carrying on specific purpose of carrying on specific activities in accordance with activities in accordance with special regulations, restrictions, or special regulations, restrictions, or limitationslimitations

FUNDFUND 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

FUNDFUND

ENDING FUND BALANCE MINUS BEGINNING FUND BALANCE = REVENUES MINUS EXPENDITURES

MORE REVENUES THAN EXPENDITURES MEANS MORE FUND BALANCE AT END OF YEAR

GENERAL FUNDGENERAL FUND

FUND 10FUND 10

FINANCIAL TRANSACTIONS FINANCIAL TRANSACTIONS RELATING TO CURRENT RELATING TO CURRENT OPERATIONS NOT REQUIRED OPERATIONS NOT REQUIRED TO BE ACCOUNTED FOR IN TO BE ACCOUNTED FOR IN OTHER FUNDSOTHER FUNDS

SPECIAL PROJECTS SPECIAL PROJECTS FUNDSFUNDS

FUND 21GIFTS AND DONATIONS RECEIVED FROM PRIVATE PARTIES THAT CAN BE USED FOR DISTRICT OPERATIONS

FUND 23ANY REMAINING TEACH FUND BALANCE BEING USED TO MAKE PAYMENTS ON A TEACH LOAN

FUND 27SPECIAL EDUCATION AND RELATED SERVICES FUNDED WHOLLY OR IN PART WITH STATE OR FEDERAL SPECIAL EDUCATION AID

FUND 29SPECIAL REVENUE K-12 INSTRUCTIONAL PROGRAMS NOT REQUIRED TO BE REPORTED IN OTHER SPECIAL REVENUE FUNDS

DEBT SERVICE FUNDSDEBT SERVICE FUNDS

FUND 38Repayment of debt issues that were either; not authorized by school board resolution before August 12, 1993, or incurred without referendum approval after that date.

FUND 39Repayment of debt issues that were either; authorized by school board resolution before August 12, 1993, or approved by referendum.

CAPITAL PROJECTS FUNDSCAPITAL PROJECTS FUNDS

FUNDS 41, 48 AND 49FUNDS 41, 48 AND 49

RECORDING EXPENDITURES FINANCED RECORDING EXPENDITURES FINANCED THROUGH BONDS, PROMISSORY THROUGH BONDS, PROMISSORY NOTES, STATE TRUST FUND LOANS, NOTES, STATE TRUST FUND LOANS, LAND CONTRACTS OR TAX LEVY LAND CONTRACTS OR TAX LEVY (EXPANSION FUND OR TIF(EXPANSION FUND OR TIF))

FOOD SERVICE FUNDSFOOD SERVICE FUNDS

FUND 50

ACCOUNT FOR THE DISTRICT’S FOOD SERVICE ACTIVITIES

ACTIVITIES RELATING TO PUPIL AND ELDERLY FOOD SERVICE ACTIVITIES

AGENCY FUNDAGENCY FUND

FUND 60

ACCOUNT FOR ASSETS HELD BY THE DISTRICT FOR PUPIL ORGANIZATIONS.

ONLY BALANCE SHEET ACCOUNTS FOR THIS FUND ARE REPORTED IN THE BUDGET AND ANNUAL REPORTS.

TRUST FUNDSTRUST FUNDSASSETS HELD BY THE DISTRICT IN A TRUSTEE CAPACITY FOR INDIVIDUALS, PRIVATE ORGANIZATIONS, OTHER GOVERNMENTS AND/OR OTHER FUNDSFUND 72ACCOUNTS FOR GIFTS AND DONATIONS SPECIFIED FOR THE BENEFIT OF PRIVATE INDIVIDUALS AND ORGANIZATIONS NOT UNDER THE CONTROL OF THE SCHOOL BOARD

FUND 73ACCOUNTS FOR RESOURCES HELD IN TRUST FOR FORMALLY ESTABLISHED DEFINED BENEFIT PENSION PLANS, DEFINED CONTRIBUTION PLANS OR EMPLOYEE BENEFIT PLANS

FUND 76ACCOUNTS FOR NON-DISTRICT PORTION OF INVESTMENT POOL SPONSORED BY THE DISTRICT

COMMUNITY SERVICE COMMUNITY SERVICE FUNDSFUNDS

FUND 80ACTIVITIES WHERE THE PRIMARY FUNCTION IS TO SERVE THE COMMUNITY AND ARE OUTSIDE THE REGULAR AND EXTRACURRICULAR PROGRAMS FOR STUDENTS

PACKAGE AND COOPERATIVE PROGRAM FUNDS

MULTIDISTRICT PROJECTS FOR WHICH IT IS NECESSARY TO KEEP A SEPARATE RECORD OF ACTIVITY SO THAT PARTICIPANT DISTRICTS’ SHARE CAN BE DETERMINED

FUND 91EXPENDITURES MADE BY A HOST DISTRICT FOR PROGRAMS MADE AVAILABLE TO OTHER DISTRICTS THROUGH A CESA

FUND 93CONSORTIA PROGRAMS FUNDED WITH LOANS FROM THE TEACH WISCONSIN BOARD

FUND 99ALL OTHER TYPES OF COOPERATIVE INSTRUCTIONAL FUNDS- NEVER REPORT SPECIAL EDUCATION

SOURCE & OBJECT SOURCE & OBJECT

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.

REVENUE SOURCESREVENUE SOURCES

REVENUE CODING: 2 QUESTIONS

“WHO’S PAYING THE MONEY?”

“WHAT IS IT FOR?”

REVENUE CODINGREVENUE CODINGSOURCE CODESSOURCE CODES

LOCAL (SOURCE 200) A WI DISTRICT (SOURCE 300)

DISTRICT OUTSIDE WI (SOURCE 400) INTERMEDIATE EDUCATIONAL AGENCY (SOURCE

500) STATE AGENCY (SOURCE 600) FEDERAL AGENCY (SOURCE 700) OTHER FINANCING (SOURCE 800) OTHER REVENUES (SOURCE 900)

EXPENDITURE OBJECTSEXPENDITURE OBJECTS

NORMAL RULE:

EXPENDITURES ARE CHARGED TO THE FISCAL PERIOD WHEN THE SERVICES ARE PROVIDED, SUPPLIES ARE USED OR EQUIPMENT IS ACQUIRED.

OBJECT CODING OBJECT CODING

MOST-USED OBJECT CODES– Salaries (100 Objects)– Fringe Benefits (200 Objects)– Purchased Services (300 Objects)– Non-Capital Objects (400 Objects)– Capital Objects (500 Objects)– Debt Retirement (600 Objects)

FUNCTION FUNCTION CLASSIFICATIONCLASSIFICATION

FUNCTION DESCRIBES THE PURPOSE FOR WHICH A SERVICE OR MATERIAL OBJECT IS ACQUIRED. Reporting to DPI is at the 2 or 3-digit function level, but local districts can use more detail for tracking expenditures.

FUNCTIONAL CODINGFUNCTIONAL CODING

THE QUESTION TO ANSWER:Which defined purpose caused the revenue or expense to be

incurred???

Defined Purposes: (AKA: FUNCTIONS)

– Instructional (100000) limited to activities

between students and teaching staff– Support Services (200000) administrative,

technical & logistical support to both instructional and non-instructional programs

– Community Services (300000)– Non-Program Trans. (400000)purchased

instructional services,, interfund transfers, open enrollment tuition are included here

– District-Wide (500000)used only with revenue sources

GeneralLedgerFund 10

Fund 20

Fund 30

Fund 40

Fund 50

Other Funds

Addendas

DebtServiceAmort.

Schedules

08 Debt table.

Budget/AnnualReport

toDPI

SpecialEd.

ClaimFund 27

ORGANIZATION OVERVIEW

RESOURCESRESOURCES WUFAR link located at: WUFAR link located at:

http://www.dpi.state.wi.us/sfs/wufar.htmlhttp://www.dpi.state.wi.us/sfs/wufar.html

PROPERTY TAX LEVIESPROPERTY TAX LEVIES

PROPERTY TAX LEVIESPROPERTY TAX LEVIES

LEVIES INTO FUND 10, 38, 39, LEVIES INTO FUND 10, 38, 39, 41, 8041, 80

THE TOTAL LEVY IS REVENUETHE TOTAL LEVY IS REVENUE SOURCE 211 – CURRENT LEVYSOURCE 211 – CURRENT LEVY SOURCE 212 – CHARGEBACK LEVY SOURCE 212 – CHARGEBACK LEVY

(FUND 10 ONLY)(FUND 10 ONLY) TAXES RECEIVABLE AT JUNE 30TAXES RECEIVABLE AT JUNE 30

DEBT SERVICE TAX LEVYDEBT SERVICE TAX LEVY Levy for the calendar year - budget Levy for the calendar year - budget

for the fiscal year ending June 30for the fiscal year ending June 30 Example:Example:

LT Debt Payments Due (principal & interest) October, 2007$101,000 March, 2008 $502,000 October, 2008$ 98,000

Levy in November, 2007 ($502,000 + $98,000)

Budget for 2007-08 ($101,000 + $502,000)

PROPERTY TAX REFUNDSPROPERTY TAX REFUNDS USUALLY PAYMENT TO MUNICIPALITY USUALLY PAYMENT TO MUNICIPALITY

FOR UNCOLLECTED PERSONAL FOR UNCOLLECTED PERSONAL PROPERTY TAXESPROPERTY TAXES FUND 10 FUNCTION 490 000 OBJECT 972FUND 10 FUNCTION 490 000 OBJECT 972(10 E 490 000 972)(10 E 490 000 972)

COLLECTION OF REFUNDCOLLECTION OF REFUND FUND 10 SOURCE 972 (10 R 000 000 972)FUND 10 SOURCE 972 (10 R 000 000 972)

SOURCE 212 LEVY – NET PAYMENTSSOURCE 212 LEVY – NET PAYMENTS** OPTIONALOPTIONAL NOT NEGATIVENOT NEGATIVE

*object 972 minus source 972*object 972 minus source 972

PROPERTY TAX REFUNDS PROPERTY TAX REFUNDS (cont’d)(cont’d)

ONLY LEVY FOR UNCOLLECTED ONLY LEVY FOR UNCOLLECTED TAXES PAID OR HAVE BEEN BILLED TAXES PAID OR HAVE BEEN BILLED BY THE MUNICIPALITY AND YOU BY THE MUNICIPALITY AND YOU INTEND TO PAY THEMINTEND TO PAY THEM

OVER LEVY RESULTS IN TAXING OVER LEVY RESULTS IN TAXING WITHOUT PROPER AUTHORIZATIONWITHOUT PROPER AUTHORIZATION

SOURCE/OBJECT 971/972SOURCE/OBJECT 971/972

Source/Object 971 “Refund of Source/Object 971 “Refund of Prior Year Expense”Prior Year Expense” E-Rate Refunds, Insurance Refund, CESA

Refund, Dividend’s on Worker’s Compensation

Source/Object 972 “Property Tax Source/Object 972 “Property Tax and Equalization Aid Refund”and Equalization Aid Refund” Property Tax Refund, Equalization Aid

Refund, Taxpayer Levy Refund, Special DPI Approved Amount

STATE AND FEDERAL AIDSTATE AND FEDERAL AID

STATE AND FEDERAL AIDSTATE AND FEDERAL AID ENTITLEMENTSENTITLEMENTS

MOST BIG $ PROGRAMSMOST BIG $ PROGRAMS GENERAL AID, SPECIAL GENERAL AID, SPECIAL

EDUCATION,TRANSPORTATION,SAGEEDUCATION,TRANSPORTATION,SAGE REVENUE WHEN $ APPROPRIATEDREVENUE WHEN $ APPROPRIATED

REIMBURSABLE GRANTSREIMBURSABLE GRANTS ““GRANT” PROGRAMSGRANT” PROGRAMS

CLAIMED ON PI 1086, SOURCE 630/730CLAIMED ON PI 1086, SOURCE 630/730 REVENUE WHEN REIMBURSABLE REVENUE WHEN REIMBURSABLE

EXPENDITURE OCCURSEXPENDITURE OCCURS

ACCOUNTING FOR DELAYED ACCOUNTING FOR DELAYED EQUALIZATION AID EQUALIZATION AID

PAYMENTPAYMENT

ACCOUNTING FOR DELAYED ACCOUNTING FOR DELAYED EQUALIZATION AID EQUALIZATION AID

PAYMENTPAYMENTCashCash $1,496,409 $1,496,409

10E 435000 38210E 435000 382 149,882 149,88210R 62110R 621 $1,504,684$1,504,684

10R 34510R 345 141,607 141,607

Receivable 715500Receivable 715500 $ 72,291$ 72,291

10R 62110R 621 $ 72,291$ 72,291

Grant ReceivablesGrant Receivables

When a grant reimbursement claim is submitted When a grant reimbursement claim is submitted BEFORE the end of the fiscal year, but the actual BEFORE the end of the fiscal year, but the actual cash won’t be received until AFTER the start of cash won’t be received until AFTER the start of

the new fiscal year, a grant receivable needs to be the new fiscal year, a grant receivable needs to be booked in the ledger.booked in the ledger.

Grant ReceivablesGrant Receivables

Why do it this way?Why do it this way?

In accrual accounting, revenue is recognized when it In accrual accounting, revenue is recognized when it is earned. By submitting the reimbursement claims is earned. By submitting the reimbursement claims in June, the district “earns” the money in the 06-in June, the district “earns” the money in the 06-

07 school year, so the claims need to be booked as 07 school year, so the claims need to be booked as revenue in 06-07; however, since the actual cash revenue in 06-07; however, since the actual cash

will not come until the 07-08 school year, a will not come until the 07-08 school year, a receivable is used to account for the expected receivable is used to account for the expected

cash.cash.

Grant ReceivablesGrant ReceivablesExample:Example:Title I-A 06-07 reimbursement claim for $26,493 is Title I-A 06-07 reimbursement claim for $26,493 is

completed and sent to DPI on June 29.completed and sent to DPI on June 29.

07-08 Entry When the Cash Comes:07-08 Entry When the Cash Comes:Debit 10B-711000-001 CashDebit 10B-711000-001 Cash $26,493 (increase)$26,493 (increase) Credit 10B-715000-001 Due from Oth Gov’ntsCredit 10B-715000-001 Due from Oth Gov’nts $26,493 (decrease) $26,493 (decrease)

(So, 07-08 revenue is not effected at all(So, 07-08 revenue is not effected at allby this transaction, which is what we by this transaction, which is what we want because this amount was already want because this amount was already booked as revenue in 06-07!)booked as revenue in 06-07!)

06-07 EOY 06-07 EOY AdjustingAdjusting Entry (both increases): Entry (both increases):Debit 10B-715000-002 Due from Oth Gov’ntsDebit 10B-715000-002 Due from Oth Gov’nts$26,493$26,493 Credit 10R-000000-751 IASA Title 1Credit 10R-000000-751 IASA Title 1 $26,493 $26,493

Grant ReceivablesGrant Receivables July 1, 2006July 1, 2006 July 1, 2007July 1, 2007

✔Submit 05-06 grant claims.

✔Book 05-06 revenue in appropriate Source and end-of-year 05-06 receivable in 715000-002.

✔Submit 06-07 grant claims.

✔Book 06-07 revenue in appropriate Source and end-of-year 06-07 receivable in 715000-002.

Receive 06-07 cash early in 07-08 fiscal year (shows up on 07-08 aids register)

Revenue should equal the Aids Register amount minus the beginning-of-the-year

receivables (05-06 revenue) plus the end-of-year receivables (06-07 revenue).

Aids register is available at: http://www.dpi.state.wi.us/sfs/online_ar.html

05-06 06-07 07-08

Receive 05-06 cash early in 06-07 fiscal year (shows up on 06-07 aids register)

DEBTDEBT

CASH FLOW BORROWINGCASH FLOW BORROWING

GENERAL FUND TRANSACTIONGENERAL FUND TRANSACTION BALANCE SHEET TRANSACTION FOR BALANCE SHEET TRANSACTION FOR

PRINCIPALPRINCIPAL INTEREST EXPENSE – ACCRUAL AT JUNE INTEREST EXPENSE – ACCRUAL AT JUNE

3030 INTEREST REVENUEINTEREST REVENUE

IN FUND PRODUCING INCOMEIN FUND PRODUCING INCOME INTEREST RECEIVABLE AT JUNE 30 INTEREST RECEIVABLE AT JUNE 30

CASH FLOW BORROWING CASH FLOW BORROWING (cont’d)(cont’d)

Accounting transactions:Accounting transactions: Dr. CashDr. Cash $1,000,000$1,000,000 Cr. Temporary Notes Payable $1,000,000Cr. Temporary Notes Payable $1,000,000

(Acct. 10B 811 100)(Acct. 10B 811 100)

Dr. Interest Expense $ 40,000Dr. Interest Expense $ 40,000 (10E 682 281 000)(10E 682 281 000)

Cr. Interest Payable $ 40,000Cr. Interest Payable $ 40,000 (10B 811 700)(10B 811 700)

CAPITAL LEASECAPITAL LEASE

““BORROWING” FROM A VENDOR BORROWING” FROM A VENDOR TO ACQUIRE ITEMTO ACQUIRE ITEM

JOURNAL ENTRY TO RECORD JOURNAL ENTRY TO RECORD FINANCING TRANSACTIONFINANCING TRANSACTION

PRINCIPAL AND INTEREST PRINCIPAL AND INTEREST PAYMENT TRANSACTIONS AS PAYMENT TRANSACTIONS AS PAYMENTS ARE MADE (object PAYMENTS ARE MADE (object 678/688, function 281000)678/688, function 281000)

Long-Term DebtLong-Term Debt

If used for acquiring capital If used for acquiring capital assets, receipted into Capital assets, receipted into Capital Projects Fund & expended out of Projects Fund & expended out of therethere

Capital items include buildings, Capital items include buildings, equipment, books equipment, books

General Fund? – highly unlikely General Fund? – highly unlikely but can be used if for operational but can be used if for operational purposes—must notify DPIpurposes—must notify DPI

BOND ANTICIPATION BOND ANTICIPATION NOTESNOTES

OFTEN TAKEN OUT PRIOR TO OFTEN TAKEN OUT PRIOR TO RECEIVING PROCEEDS OF RECEIVING PROCEEDS OF “PERMANENT” DEBT ISSUANCE“PERMANENT” DEBT ISSUANCE

WHEN RECEIVED CREDIT WHEN RECEIVED CREDIT “LOANS” SOURCE 873 – CAPITAL “LOANS” SOURCE 873 – CAPITAL PROJECTS FUNDPROJECTS FUND

INTEREST PAYMENTS ON BANS – INTEREST PAYMENTS ON BANS – DEBT SERVICE FUND – TRANSFER DEBT SERVICE FUND – TRANSFER IN OR LEVY IN OR LEVY

DEBT REFINANCINGDEBT REFINANCING

INCUR NEW DEBT AND USE INCUR NEW DEBT AND USE PROCEEDS TO “PAY OFF” PROCEEDS TO “PAY OFF” EXISTING DEBTEXISTING DEBT

““PAY OFF” MAY INCLUDE PAY OFF” MAY INCLUDE PAYMENT OF NEW DEBT PAYMENT OF NEW DEBT PROCEEDS TO ESCROW AGENTPROCEEDS TO ESCROW AGENT

TAKES PLACE IN DEBT SERVICE TAKES PLACE IN DEBT SERVICE FUNDFUND

CONTACT DPI FOR ASSISTANCE CONTACT DPI FOR ASSISTANCE WITH RECORDINGWITH RECORDING

WHAT HAPPENS IF DEBT WHAT HAPPENS IF DEBT SERVICE EXPENDITURES ARE SERVICE EXPENDITURES ARE

CODED INCORRECTLYCODED INCORRECTLY??

SHARED COST MAY BE SHARED COST MAY BE CALCULATED INCORRECTLY, CALCULATED INCORRECTLY, RESULTING IN WRONG AID BEING RESULTING IN WRONG AID BEING PAID TO DISTRICTPAID TO DISTRICT

DISTRICT’S ANNUAL REPORT DEBT DISTRICT’S ANNUAL REPORT DEBT TABLE WILL NOT RECONCILE TABLE WILL NOT RECONCILE FROM BEGINNING TO END OF FROM BEGINNING TO END OF YEARYEAR

Reporting District Long-Term Reporting District Long-Term DebtDebt

Districts are now required to notify DPI Districts are now required to notify DPI via the reporting portal any changes in via the reporting portal any changes in their long-term debt repayment their long-term debt repayment schedulesschedules

Prepayments of principal, refinancings, Prepayments of principal, refinancings, new loans will require adjustments by new loans will require adjustments by districtdistrict

Updating of online debt schedules can Updating of online debt schedules can be done at any time during the yearbe done at any time during the year

Reporting District Long-Term Reporting District Long-Term DebtDebt

Debt amortization schedules must be Debt amortization schedules must be entered as part of Annual Report entered as part of Annual Report submission process if not updated submission process if not updated previouslypreviously

Reporting via DPI portalReporting via DPI portal https://www2.dpi.state.wi.us/safr/https://www2.dpi.state.wi.us/safr/

Reporting District Long-Term Reporting District Long-Term DebtDebt

Be sure that the function 281000, Be sure that the function 281000, 283000, 285000, 289000 principal 283000, 285000, 289000 principal and interest amounts used in your and interest amounts used in your general ledger agree to debt general ledger agree to debt schedulesschedules

PAYROLLPAYROLL

PAYROLL ITEMSPAYROLL ITEMS

ACCRUAL AT JUNE 30 FOR EMPLOYEE ACCRUAL AT JUNE 30 FOR EMPLOYEE SERVICES PROVIDEDSERVICES PROVIDED SALARIESSALARIES RELATED BENEFITSRELATED BENEFITS INCLUDES “SUMMER PAYROLLS”INCLUDES “SUMMER PAYROLLS”

NO ACCRUAL FOR POST-EMPLOYMENT NO ACCRUAL FOR POST-EMPLOYMENT BENEFITSBENEFITS

SPECIFIC RULES FOR UNSETTLED SPECIFIC RULES FOR UNSETTLED CONTRACTSCONTRACTS

UNSETTLED EMPLOYEE UNSETTLED EMPLOYEE CONTRACTSCONTRACTS

If mediation/arbitration when filing If mediation/arbitration when filing report—lowest offer is recordedreport—lowest offer is recorded

If settlement occurs after filing report If settlement occurs after filing report but before October 1, amend report but before October 1, amend report to show increased costto show increased cost

Settlement occurs after October 1—Settlement occurs after October 1—additional cost is reported in year additional cost is reported in year settlement occurssettlement occurs

COMPENSATED ABSENCESCOMPENSATED 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”.

SPECIAL EDUCATIONSPECIAL EDUCATION

Fund 27 Fund 27 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.

Fund 27 - What’s up with Fund 27 - What’s up with that??that??

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.

MEDICAID “SBS” SERVICESMEDICAID “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

SPECIAL EDUCATION SPECIAL EDUCATION PROGRAMSPROGRAMS

Many different types of special Many different types of special education programseducation programsPROGRAM OPERATED BY THE DISTRICT (DISTRICT EMPLOYS PERSONNEL)

PROGRAM OPERATED WITH A CONSORTIUM OF SCHOOLS

PROGRAM OPERATED BY CESAPROGRAM OPERATED BY CCDEB

Costs funded by a combination of Costs funded by a combination of state, local and federal dollarsstate, local and federal dollars

COOPERATIVE AGREEMENT COOPERATIVE AGREEMENT 66.030166.0301

COOPERATIVE AGREEMENT COOPERATIVE AGREEMENT 66.030166.0301

MULTIDISTRICT PROJECTS WITH COOP AGREEMENT

ONE DISTRICT ACTS AS FISCAL AGENTMAINTAIN REVENUE AND EXPENDITURE RECORDS

FISCAL AGENT AGREEMENT STRONGLY ENCOURAGEDIDENTIFIES RESPONSIBILITIES OF BOTH THE FISCAL AGENT AND INDIVIDUAL GRANT RECIPIENTS

COOP TRANSACTION COOP TRANSACTION CODINGCODING

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

COOP TRANSACTION COOP TRANSACTION CODING (Cont.)CODING (Cont.)

FUND 99FUND 99OTHER THAN SPECIAL EDUCATION

REVENUES MUST EQUAL EXPENDITURES

COST PRORATED TO PARTICIPATING DISTRICTS

FISCAL AGENT PORTION TRANSFERRED FROM FUND 10

FUND 27FUND 27COOP TRANSACTION COOP TRANSACTION

CODINGCODINGFUND 27

MULTIDISTRICT PROGRAM FOR SPECIAL EDUCATION

FISCAL AGENT DISTRICT INCURS ALL EXPENDITURESMUST HIRE STAFF

FISCAL AGENT DISTRICT BILLS PARTICIPATING DISTRICTS FOR TOTAL COST OF PROGRAM

COOP TRANSACTION COOP TRANSACTION CODING (Cont.)CODING (Cont.)

FUND 27FISCAL 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

PURCHASED INSTRUCTIONAL PURCHASED INSTRUCTIONAL SERVICES (FUNCTION 430 000)SERVICES (FUNCTION 430 000)

INSTRUCTIONAL SERVICES INSTRUCTIONAL SERVICES PROVIDED RESIDENT DISTRICT BY PROVIDED RESIDENT DISTRICT BY OTHER ENTITIESOTHER ENTITIES

LINKED WITH A 300 “PURCHASE LINKED WITH A 300 “PURCHASE SERVICE” OBJECTSERVICE” OBJECT

NON-INSTRUCTIONAL SERVICES NON-INSTRUCTIONAL SERVICES CHARGED TO APPROPRIATE 200 CHARGED TO APPROPRIATE 200 000 FUNCTION WITH 300 OBJECT000 FUNCTION WITH 300 OBJECT

OTHER ISSUESOTHER ISSUES

FUND 21 - GIFTSFUND 21 - GIFTS

Gifts specified by donor to be Gifts specified by donor to be used for operating purposes used for operating purposes ((playground equipment, school playground equipment, school nurse, beautification of nurse, beautification of grounds)grounds)

Includes both expendable and Includes both expendable and non-expendable portionnon-expendable portion

http://www.dpi.wi.gov/sfs/wufar.htmlhttp://www.dpi.wi.gov/sfs/wufar.html

COMMODITIESCOMMODITIES

Obtained from the commodity internet Obtained from the commodity internet system at: system at: http://www.dpi.wi.gov/fns/index.htmlhttp://www.dpi.wi.gov/fns/index.html

The total value of commodities received is The total value of commodities received is in the CARS Report and is labeled “Total in the CARS Report and is labeled “Total Value Received: Entitlement, Bonus, DoD, Value Received: Entitlement, Bonus, DoD, and Cheese Processing.”and Cheese Processing.”

Year end entry:Year end entry: Debit Function 257000, Object 410Debit Function 257000, Object 410 Credit Source 714Credit Source 714

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

AGENCY FUND 60AGENCY FUND 60

Student organizations and clubs Student organizations and clubs Students manage activities and faculty advisor Students manage activities and faculty advisor

approves transactionsapproves transactions District acts as agent maintaining records and District acts as agent maintaining records and

accounting for activityaccounting for activity School Board responsible for establishment and School Board responsible for establishment and

enforcement of policies and procedures to enforcement of policies and procedures to safeguard agency assetssafeguard agency assets

District may establish agency fund for parent District may establish agency fund for parent organizationsorganizations

Guidance on developing policies and procedures Guidance on developing policies and procedures http://www.dpi.state.wi.us/sfs/doc/stud_acct.dochttp://www.dpi.state.wi.us/sfs/doc/stud_acct.doc

FUND 73FUND 73EMPLOYEE BENEFIT TRUST FUNDEMPLOYEE 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.html

FUND 73FUND 73EMPLOYEE BENEFIT TRUST FUNDEMPLOYEE BENEFIT TRUST FUND

Must have on file with DPI: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

FUND 73FUND 73EMPLOYEE BENEFIT TRUST FUNDEMPLOYEE BENEFIT TRUST FUND

Trust must be irrevocableTrust must be irrevocable Contribution to the trust must be Contribution to the trust must be

used for purpose trust is establishedused for purpose trust is established Reported as an expenditure by Reported as an expenditure by

district and is included in shared costdistrict and is included in shared cost

SALE OF SCHOOL PROPERTYSALE 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 district’s annual meeting

SELF FUND HEALTH SELF FUND HEALTH BENEFITSBENEFITS

DISTRICT SELF FUNDS DISTRICT SELF FUNDS HEALTH/DENTAL BENEFITSHEALTH/DENTAL BENEFITS

PRIVATE PLAN ADMINISTRATOR PRIVATE PLAN ADMINISTRATOR USUALLY INVOLVEDUSUALLY INVOLVED

PREMIUM EQUIVALANCY USED FOR PREMIUM EQUIVALANCY USED FOR BUDGETING/COSTINGBUDGETING/COSTING

FINAL REPORTED EXPENDITURES FINAL REPORTED EXPENDITURES MUST BE ACTUAL COST FOR FISCAL MUST BE ACTUAL COST FOR FISCAL YEAR – INCLUDING IBNR COSTS YEAR – INCLUDING IBNR COSTS

SELF-FUNDED HEALTH SELF-FUNDED HEALTH BENEFITSBENEFITS

SERIES OF GENERAL FUND SERIES OF GENERAL FUND BALANCE SHEETS ACT AS BALANCE SHEETS ACT AS “INSURANCE COMPANY”“INSURANCE COMPANY”

LIABILITY ACCOUNT VS LIABILITY ACCOUNT VS RESERVED FUND BALANCERESERVED FUND BALANCE

5% ADJUSTMENT ACCOUNT 5% ADJUSTMENT ACCOUNT SOURCE/OBJECT 965SOURCE/OBJECT 965

QUESTIONS?QUESTIONS?

School Finance AuditorsSchool Finance Auditors

Kathy Guralski - (608) 266-3862Kathy Guralski - (608) 266-3862kathryn.guralski@dpi.state.wi.uskathryn.guralski@dpi.state.wi.us

Gene Fornecker - (608) 267-7882Gene Fornecker - (608) 267-7882eugene.fornecker@dpi.state.wi.useugene.fornecker@dpi.state.wi.us

Natalie Rew - (608) 267-9212Natalie Rew - (608) 267-9212natalie.rew@dpi.state.wi.usnatalie.rew@dpi.state.wi.us