SPRING AT A GLANCE & the Budget Amendment Process

March 11, 2015

Debi Towns, Assistant Director School Financial Services Team, DPI

2

Why “Spring at a Glance”?

To help you prepare for next few months

To answer the basic questions that we receive throughout the year

To show how data that we collect from school districts translates into:◦Payment of State Aids (General Aid,

Categorical Aids)◦Calculation of Revenue Limit

3

Who We Are – The SFS TeamDivision for Finance and Management

Brian PahnkeAssistant Superintendent

School Financial ServicesRobert Soldner, Director

Education Administrative Director

Bill EvansIS Business Automation Specialist

Victoria ChungAccountant Senior

Gene ForneckerSchool Finance Auditor

Bruce AndersonSchool Administration Consultant

Dan ParizoIS Business Automation Specialist

Paul SpirekIS Business Automation Specialist

Derek SliterSchool Finance Auditor

Brian KahlSchool Finance Auditor

Karen Kucharz RobbeSchool Administration Consultant

School Financial ServicesDebi Towns, Assistant Director

Education Administrative Director

Carey BradleySchool Administration Consultant

Dan BushSchool Administration Consultant

4

How We Can Help You

Phone calls, e-mail

Web pages, webcasts, and tutorials

◦ Late Breaking News (from SFS Home Page):

http://sfs.dpi.wi.gov/sfs_late_breaking

◦ Prior presentations: http://sfs.dpi.wi.gov/sfs_presentations

Newsletters and listserv notices [SFS Bulletins]

◦ Repository of prior SFS Bulletins and Newsletters:

http://sfs.dpi.wi.gov/sfs_mailings

◦ If you are not already subscribed, you can do so at the following website: http://sfs.dpi.wi.gov/sfs_listservsubscribe

Conferences and workshops

5

What You Should Do…Today!

Bookmark this website http://sfs.dpi.wi.gov/

Make sure you are identified appropriately in the PI-1500 District Contacts Report.

Please ensure updates are made to reflect changes in staff or responsibilities.

6

What We Will Cover Today …

Processes you need to be aware of for the next few months

◦ The Current Fiscal Year (2014-15) Debt Schedules, Open Enrollment, Pupil Count

Changes / Membership Audit, reporting referenda results, miscellaneous year end procedures & reports, and current year Budget Amendments.

◦ Next Fiscal Year (2015-16) Budget for 2015-16 (estimating summer and

September 2015 enrollments, revenue limits, district staff budgets)

CURRENT FISCAL YEAR 2014-15

8

MARCHCurrent FY 2014-15

Debt Schedule Submit any changes to debt schedule within 10 days

of the change (in the school finance reporting portal - “SAFR”)

◦ New debt issued …. or

◦ Changes to existing debt schedules.

Keeping SAFR updated will ensure consistency with the debt schedule data in the district’s Annual Report

Contact is Gene Fornecker eugene.fornecker@dpi.wi.gov

For more information on debt, including reporting instructions, please refer to http://sfs.dpi.wi.gov/sfs_debtrpt

9

MARCHCurrent FY 2014-15

Open Enrollment Verify open enrollment students in OPAL to

ensure accurate aid transfer in June.

Districts should review the status of both OE-In and OE-Out students

Contact the other district as soon as possible to resolve issues in timely manner

It may be necessary to make changes to the September & / or January pupil count reports as a result of OE adjustments.

10

MARCH/APRIL Current FY 2014-15

Pupil Count Changes/Membership Audit

Count changes may be related to review of OE status or result of Membership Audit.

District was selected for a 14-15 Membership Audit PI-1563 Pupil Count Reports will remain open until audit is received by district – changes must be made by the district, but with auditor’s agreement.

District was NOT selected for a 14-15 Membership Audit District must contact the SFS Team to get the PI-1563 Pupil Count Report opened to make changes. Contact debra.towns@dpi.wi.gov

11

APRIL Current FY 2014-15

Membership Audits

Membership audits are due to SFS Team on May 1st.

Changes to the September 2014 pupil count report could have an impact on 2014-15 Revenue Limit

calculation.

12

APRIL/MAY Current FY 2014-15

Report Referendum Results Email the preliminary results to SFS Team the

following day

Send Board of Canvassers Report to SFS Team (email a PDF document or fax to SFS Team)

SFS Team Contact is Carey Bradley carey.bradley@dpi.wi.gov

Referendum procedures & reporting information: http://sfs.dpi.wi.gov/sfs_ref1

13

APRIL/MAY Current FY 2014-15

Prepare for ‘Year End’ Procedures

Purchase Order Deadline – consider setting a deadline after which new purchase orders will not be processed

Annual Audit (July/August) – to prepare for the audit, districts should request a list of all items the auditor will need for verification

◦ The district financial statements represent the financial activity for the year ended June 30th

◦ They are presented in accordance with Generally Accepted Accounting Principles (GAAP) and in compliance with state and federal requirements.

14

APRIL/MAY Current FY 2014-15

DPI Reports Membership Audit – due May 1st

SAGE Classroom Expansion Claim – due May 15th

Group/Foster Care Report – report process begins in late May with letter from SFS Team to districts

Report Openings (in SAFR) in May:

◦ PI-1547 – Pupil Transportation (Regular School Year)

◦ PI-1505-Calendar – School Calendar Report

15

SPRINGCurrent FY 2014-15

CURRENT YEAR BUDGET CHANGES

16

SPRING Current FY 2014-15

CURRENT YEAR BUDGET CHANGES

The original budget provides a best estimate, at the time of the budget adoption, of the school district’s resources & costs for a school year.

As the year progresses, districts may need to change budget appropriations and purposes:

◦ State law requires that 2/3 board vote is required to change the budget [ss. 65.90(5)]

◦ Also requires that any changes made shall be published in a Class 1 notice within 10 days after the change is made.

17

SPRINGCurrent FY 2014-15

CURRENT YEAR BUDGET CHANGES

Do the two-thirds vote and publication requirements apply to every change to a district’s budget?

Statute [ss. 65.90(5)]:

“ … the amounts of the various appropriations and the purposes for such appropriations state in a budget …”

Appropriation = $ amount

Purpose = function (in WUFAR) – think of as a major line item (not summary line) in the district’s budget

Note: Districts are advised to use a budget format which shows amounts appropriated for expenditures according to [WUFAR] functions, as function equates to purpose.

18

SPRING Current FY 2014-15

CURRENT YEAR BUDGET CHANGES

Pursuant to input from the WASB, school district officials and legal counsel, the DPI recommends that the two-thirds vote and publication are required if:◦ Any change in $ amount budgeted for a specific

purpose, and / or◦ Any change to a purpose (Function) for which funds

were appropriated in the line items of the district’s adopted budget

Changes in subordinate line items from which the adopted budget evolved (but not detailed in the adopted budget) do not require the two-thirds vote & publication.

19

20

SPRING Current FY 2014-15

RESOURCES ON THE SFS WEB PAGES

Budget Hearing and Adoption Requirements:

http://sfs.dpi.wi.gov/sfs_6590req

Budget Hearing Timelines

http://sfs.dpi.wi.gov/sfs_6590time

General Information: Budget Hearing & Adoption

http://sfs.dpi.wi.gov/sfs_budhear

21

In a Nutshell

When can the board make an official change to the budget?◦ Anytime it is necessary

When must a change pass by 2/3 vote?◦ Change to appropriation◦ Change to purpose (i.e., line item in budget /

function)

When should a change be published?◦ Within 10 days of the board action

When should a budget change be recorded in your DPI Budget Report? And WHY?◦ As soon as practical, because that data is used for

the July 1st Estimate of General Aid

22

UPCOMING FISCAL YEAR2015-16

24

SPRING Upcoming FY 2015-16

Transfer of Service (TOS)

The net TOS amount will affect the 2015-16 revenue limit calculation as an exemption to the district’s limit

Gather TOS information

◦ Establish contact with the person in your district who is responsible for this report

◦ You will need information related to costs associated with transfers into your district, and … you may be asked for information by other districts (transfers out)

SFS Team Contact: Bruce.Anderson@dpi.wi.gov

General Information: http://sfs.dpi.wi.gov/transfer-service

25

SPRINGUpcoming FY 2015-16

2015-16 BUDGET PREPARATION

Gather preliminary budget data and compile your initial full budget Staff should be completing

individual/departmental budgets for the next school year (this practice will vary in different districts)

Open enrollment will need to be estimated since all applications are not in / acted on at this time (deadline is April 30th; also, year-round exceptions).

The Pre-Populated 2015-16 Revenue Limit Worksheet is available at: http://sfs.dpi.wi.gov/sfs_revlimworksheet

26

SPRING Upcoming FY 2015-16

2015-16 Pre-Populated Revenue Limit Worksheet

At this time, your worksheet includes: Base revenues from 2014-15 worksheet

September and Summer FTE for 2012, 2013 & 2014

Per Pupil Adjustment: $0 (Line 4A)

Low Revenue Ceiling threshold: $9,100 (Line 4B)

Eligible carryover authority from 2014-15, if applicable (Line 8A)

High Poverty Aid, if applicable (Line 12B)

27

SPRINGUpcoming FY 2015-16

2015-16 Pre-Populated Revenue Limit Worksheet

At this time, districts must estimate: September and Summer FTE for 2015 Exemptions to revenue limit:

◦ Recurring – TOS, Transfer of Territory, Federal Impact Aid loss, Recurring Referendum (Lines 8B-8D)

◦ Non-Recurring – Non-Recurring Referendum, Energy Efficiency, Refunding/Rescinded Taxes, Uncounted Prior-Year Open Enrollment Pupils (Lines 10A-10E)

NOTE: Declining Enrollment auto-calculates upon entry of 2015 FTE data

Equalized Property Values (Lines 17A & B) – it is not necessary at this time for purposes of estimating revenue (Line 11)

◦ These values will come to DPI on October 1st; for now, districts can use the values from 2014-15 worksheet

28

SPRINGUpcoming FY 2015-16

DISTRICT:

1. 2014-15 Base Revenue (Funds 10, 38, 41) (from left) 4,015,7922. Base Sept Membership Avg (12+.4ss, 13+.4ss, 14+.4ss/3) (from left) 430

2014-15 General Aid Certification (14-15 Line 12A, src 621) + 2,430,036 3. 2014-15 Base Revenue Per Member (Ln 1 / Ln2) (w ith cents) 9,339.052014-15 Computer Aid Received (14-15 Line 17, Src 691) + 333 4. 2015-16 Per Member Change (A+B) 0.002014-15 Hi Pov Aid (14-15 Line 12B, src 628) + 0 A. Allowed Per Pupil Change (+$0.00/Member) 0.002014-15 Fnd 10 Levy Cert (14-15 Line 18, Src 211) + 2,094,277 B. Low Rev Incr ((9,100 - (3 + 4A))-4C) Not < 0 02014-15 Fnd 38 Levy Cert (14-15 Line 14B, Src 210) + 20,818 C. Low Rev Dist in CCDEB (Enter DPI Adjustment) 0.002014-15 Fnd 41 Levy Cert (14-15 Line 14C, Src 210) + 0 5. 2015-16 Maximum Revenue / Memb (Ln 3 + Ln 4) 9,339.052014-15 Aid Penalty for Over Levy (14-15 FINAL Rev Limit Worksheet) - 333 6. Current Membership Avg (13+.4ss, 14+.4ss, 15+.4ss/3) (from left) 02014-15 Penalty for Unspent Energy Exemption - 0 7. 2015-16 Rev Limit, No Exemptions (Ln7A + Ln 7B) (rounded) 02014-15 Total Levy for All Levied Non-Recurring Exemptions* - 529,339 A. Max Rev/Memb x Cur Memb Avg (Ln 5 x Ln 6) 0Line 1 NET 2014-15 Base Revenue = 4,015,792 B. Hold Harm Non-Recurr Exemption 0

8. Total Recurring Exemptions (A+B+C+D+E) (rounded) 0A. Prior Year Carryover 0B. Transfer of Service (if negative, include sign) 0C. Transfer of Territory (if negative, include sign) 0D. Federal Impact Aid Loss (2013-14 to 2014-15) 0

E. Recurring Referenda to Exceed (If 2015-16 is first year) 0 <<Enter if not pre-filled

Line 2: Base Avg:(12+.4ss)+(13+.4ss)+(14+.4ss) / 3 = 430 9. 2015-16 Limit with Recurring Exemptions (Ln 7 + Ln 8) 02012 2013 2014 10. Total 2015-16 Non-Recurring Exemptions (A+B+C+D+E) 600,000

Summer fte: 12 8 8 A. Non-Recurring Referenda to Exceed 2015-16 Limit 600,000 <<Enter if not pre-filled

% (40,40,40) 5 3 3 B. Declining Enrollment Exemption for 2015-16 (from left)Sept fte: 427 430 423 C. Energy Efficiency Exemption for 2015-16 0 <<Enter if not pre-filled

Total fte 432 433 426 D. Adjustment for Refunded or Rescinded Taxes for 2015-16 0E. Prior Year Open Enrollment (uncounted pupils) 0

Line 6: Curr Avg:(13+.4ss)+(14+.4ss)+(15+.4ss) / 3 = 0 F. Penalty for Ineligible Community Serv Expends 02013 2014 2015 11. 2015-16 Revenue Limit With All Exemptions (Ln 9 + Ln 10) 600,000

Summer fte: 8 8 0 12. Total Aid to be Used in Computation (12A + 12B) 0% (40,40,40) 3 3 0 A. 2015-16 EST of October 15 Certification of General Aid 0Sept fte: 430 423 0 B. State Aid to High Poverty Districts (not all dists) 0

Total fte 433 426 013. Allowable Limited Revenue: (Line 11 - Line 12) 600,000

Line 10B: Declining Enrollment Exemption = (10, 38, 41 Levies + Src 691. Src 691 is DOR Computer Aid.)

Average FTE Loss (Line 2 - Line 6, if > 0) 14. Total Limited Revenue To Be Used (A+B+C) Not >line 13 0 X 1.00 = Entries Required Below: Amnts Needed by Purpose and Fund:

X (Line 5, Maximum 2015-2016 Revenue per Memb) = A. Gen Operations: Fnd 10 including Src 211 & Src 691 (P roposed Fund 10)

Non-Recurring Exemption Amount: B. Non-Referendum Debt (inside limit) Fnd 38 Src 210 (to Budget Rpt)

C. Capital Exp, Annual Meeting Approved: Fnd 41 Src 210 (to Budget Rpt)

Line 17: State Aid for Exempt Computers = #VALUE! 15. Total Revenue from Other Levies (A+B+C+D) (A+B+C+D): 0Line 17 = A X (Line 16 / C) (to 8 decimals) (Rounds to Dollar) A. Referendum Apprvd Debt (Non Fund 38 Debt-Src 210) Entry Required

2015 Property Values (October 1, 2015 Values from DOR) Entry Incomplete or Incorrect B. Community Services (Fnd 80 Src 210) (to Budget Rpt)

A. 2015 Exempt Computer Property Valuation Required + 0 C. Prior Year Levy Chargeback (Src 212) (to Budget Rpt)

B. 2015 TIF-Out Tax Apportionment Equalized Valuation + 0 D. Other Levy Revenue - Milwaukee & Kenosha Only (to Budget Rpt)

C. 2015 TIF-Out Value plus Exempt Computers (A + B) = 16. Total Levy + Src 691, "Proposed Levy" (Ln 14 + Ln 15) #VALUE! 0 Computer aid replaces a portion of proposed Fund 10 Levy 17. Est Src 691 (Comp Aid) Based on Ln 16 & Values Entered (to Budget Rpt) #VALUE!

18. Fnd 10 Src 211 (Ln 14A-Ln 17), 2015-16 Budget #VALUE!Line 18 (not 14A) is the Fund 10 Levy certified by the Board.

19. Total Fall, 2015 All Fund Tax Levy (14B + 14C + 15 + 18) #VALUE!

*For 2014-15 Non-Recurring Exemptions Levy Amount, enter actual amount for which district levied; (7B Hold Harmless, Non-Recurring Referenda, Declining Enrollment, Energy Efficiency Exemption, Refunded/Rescinded Taxes, P rior Year Uncounted Open-Enroll. P upils)

AN AMOUNT FOR THE OCTOBER 15, 2015 AID CERTIFICATION MUST BE ESTIMATED.

2015-2016 Revenue Limit Worksheet

Count Ch. 220 Inter-District Resident Transfer Pupils @ 75%.

Line 1 Amount May Not Exceed Line 11 minus Line 7B of Final 14-15 Revenue Limit

September & Summer FTE Membership Averages

DATA AS OF 1/14/2015 2:30 PM

Albany 63

29

SPRINGUpcoming FY 2015-16

2015-16 BUDGET PREPARATION School boards are required to approve a

“proposed” budget for presentation at the budget hearing.

The Board shall adopt an “original” budget after the hearing but no later than the meeting in which the levy is set (levy must be set by November 1st).

Review and prepare for the annual meeting as well as meeting notice requirements.

Remember, DPI provides samples that the district can utilize for this process which are available at http://sfs.dpi.wi.gov/sfs_budhear

30

Spending Authority Prior to Passage of Original Budget

§120.13(33) provides spending authority to the school board to meet immediate expenses of operating & maintaining the public instruction in the district during the period between July 1st and the final adoption of a budget by the school board after the budget hearing.

31

Original Budget Adoption The adopted budget identifies the anticipated

revenue and proposed expenditures which the board has agreed to at the time of passage.

Budget detail is based upon the Wisconsin Uniform Financial Accounting Requirements (WUFAR) hierarchy of accounts – at the Function level.

DPI provides a recommended budget publication, adoption and change format, available at: http://sfs.dpi.wi.gov/sfs_budhear

32

Original Budget Adoption 65.90(1) requires districts to formulate a budget and

hold public hearings

65.90(2) identifies what needs to be included

65.90(3) requires districts to publish a budget summary

65.90(3)(b) identifies what needs to be included in the “proposed” budget summary

The published budget summary is a “proposed” budget

33

Original Budget Adoption

65.90(4) identifies the timelines for holding the public hearing on the “proposed” budget

120.12(3)(a) and (c) requires the board to set a levy on or before Nov 1st. The budget adopted after the public hearing but on or before November 1st is considered the first “official” budget

65.90(5) clarifies that 2/3 board vote is required to change the budget

Contact Us

Bruce Anderson, Consultant 608-267-9707 Carey Bradley, Consultant 608-267-3752 Dan Bush, Consultant 608-267-9212 Karen Kucharz, Consultant 608-266-3464 Gene Fornecker, Auditor 608-267-7882 Brian Kahl, Auditor 608-266-3862 Debi Towns, Ass’t. Director 608-267-9209 Bob Soldner, Director 608-266-6968

35

So, who has a question for my answer?

Henry Kissinger