SPRING FINANCE WORKSHOP 2009DPI SCHOOL FINANCE TEAMDavid Carlson, DirectorJerry Landmark, Assistant DirectorBrad Adams, ConsultantLori Ames, ConsultantKaren Kucharz Robbe, Consultant

First, a thank youto you!The Finance Team would like to thank everyone weve come in contact with this year for your patience and diligence in submitting your reports and other information we need. Your help in getting reports and information to us on time is essential, and were glad to be working with you;Well try to help you get your reporting and other financial work done more efficiently, and in return we ask for your continued cooperation and help.

Handouts

Plum City Revenue Limit Longitudinal Survey

Plum City Equalization Aid Longitudinal Survey

PowerPoint Handouts

Where Were Headed

Information is giving out. Communication is getting through.

There will be some changes in the way the SFS team will communicate with school districts beginning with the new fiscal year.

CommunicationAs of July 1, 2009 the SFS Team will no longer send general paper mailings to school district administrators.

Rather, district administrators will receive notification by e-mail of an electronic newsletter posted to the Internet.

CommunicationIt is a component of the teams overall efforts and goal to improve communication with school districts

It is also an effective cost savings strategy for the team and the department

CommunicationThe SFS team listserve will continue as well as Late Breaking Information on the teams website

Listserve subscribers will receive notification of the new electronic newsletters

CommunicationNew PI 1500 District Contacts ReportTo identify staff to receive communications from the SFS team

To identify and authorize staff to submit reports to the department.

CommunicationNew PI 1500

Opens June 3 and is Due June 19

More detailed information will be forthcoming over the next few weeks

CommunicationLate Breaking Information

Will become a communications portal

Will include all major communications (newsletters, listserves, webcasts) arranged by most recent first

CommunicationLate Breaking Information

Team will archive these communications each fiscal year for future district access

Additionally, the team is working on a sort of communications by topic

CommunicationRSS Feeds Real Simple Syndication

Like listserve e-mailsAlerts subscribers to web page updatesFocus is on particular topicVoluntary subscription

Communication RSS Feeds

Finance team has three feeds Late Breaking InformationSchool Revenue LimitsSchool Referendum

Link to RSS Feeds on Teams Home Webpage

Economic Recovery and ReinvestmentAmerican Recovery and Reinvestment Act of 2009 (ARRA)

ARRAThe American Recovery and Reinvestment Act of 2009 (ARRA), Public Law 111-5, provides a number of funding opportunities to public schools and libraries. Some use a distribution formula, while others take the form of competitive grants.

ARRAThe latest DPI information on the Recovery and Reinvestment Act can be found at:

http://www.dpi.state.wi.us/recovery/index.html

ARRA you can link to individual programs from the DPI websiteThe ARRA provides a number of program grants to Wisconsin schools and districts:Educational Technology Homeless Children and Youth Individuals with Disabilities Education Act, Part B Qualified School Construction Bonds Qualified Zone Academy Bonds School Lunch Equipment Teacher Incentive Fund Teacher Quality Enhancement Grants Title I-A Title I School Improvement

ARRA

As soon as information is available, it will be posted to the website.

State Biennial BudgetA Brief Summary of School Finance Issues

State Biennial BudgetThe Governors budget proposals have been introduced to the legislature as AB 75;Links:DPI summary: http://dpi.wi.gov/pb/pdf/govbudsum0911lite.pdf Fiscal Bureau summary:http://www.legis.state.wi.us/lfb/2009-11Budget/Governor/tableofcontents.htm.

State Biennial BudgetRevenue Limit Proposed Changes:Increase per pupil low-revenue ceiling amount to $9,400 in 09-10 and $9,800 in 2010-11;This continues to provide the states lowest spending districts with the opportunity to narrow the disparity with the highest spending districts.

State Biennial BudgetPhase in, over a 3-year period, new exemptions to revenue limits starting in 2010-11 for:Costs of school safety equipment and compensation of security officers up to $100 per pupil or $40,000, whichever is greater;Salary & fringe costs of school nurses employed by school districts;Prior-year transportation costs per pupil above the state average.

State Biennial BudgetProposed Equalization Aid Changes:

Provide $4,799,501,900 in 2009-10Provide $4,821,447,600 in 2010-11, (an increase of $23,688,500 over 09-10)

High Poverty Aid: Net increase of $3 million in each fiscal year

State Biennial BudgetProposed Categorical Aid Changes:Special Ed Aid maintain current levels of funding at $368,939,100.Increase 4K start-up grants by $1 millionOther programs maintain current levels or have slight decreases.

Whats New in School Finance?School Finance Learning CenterReferenda Search Page ExpandedSpecial Ed Annual Report Online ReportCounting Kids ClarificationsComparative Cost/Revenue Modifications

Whats New?A Learning Center !

Referenda ResultsBased on district feedback, weve expanded the search feature for our referenda result reports

Can now search by;DistrictReferenda DateType of ReferendumReferenda Outcome

Referenda Results

Go to the School Financial Services Homepage.

Click on the link titled Referendum Information.

Referenda ResultsClick on the link titled History of School District Referenda Results

Referenda ResultsInitially you see upcoming referenda only. To see past referenda, click on Search.

Referenda ResultsThe Search feature has been expanded.

Special Education Annual ReportNEW 2008-09 Online Special Education Annual Report

Accessed via the School Finance Reporting Portal

Uses the same ID/Password as the full SAFR Annual Report

Budget Report comments from Districts reflected in the Annual Report

Special Education Annual ReportSpecial Education Annual Report Edits

SAFR Annual must equal the SE Annual (wont be able to submit the SAFR Annual unless the two reports match)

Report Grant Payments Out

Report Grant Payments In

Identify expenses for Grant Payments In

Special Education Annual ReportSpecial Education Annual Report Edits

Report Wisconsin Act 221 information for guidance counselors, nurses, social workers, and psychologists

Report number of students served in School Age Parent classrooms or homebound programs.

Report any source 346 or 347 revenue (even if the amount is zero)

A Few Clarifications for Counting Kids

Counting students who are 20 & 21;Counting students who are in a jail, detention center or hospital.

20 vs. 21 ClarificationIf a regular education student: is 20 when he/she enrolls and receives instruction, the district must provide services and can count the student. turns 21 prior to enrolling and receiving instruction, the district is not required to provide services and cannot count the student. enrolls prior to turning 21, but turns 21 before attending classes, the district is not required to provide services and cannot count the student.

20 vs. 21 ClarificationIf a special education student: is 20 prior to the first day of classes according to the school calendar, the student can enroll any time during the year, even after turning 21, and the district must provide services and can count the student.

Incarcerated StudentsA district that provides education services to a child placed in a childrens home such as a jail, detention, or hospital within the district and who has been or could have been counted as a resident pupil by a different district in the pupil count report under sec. 121.05, may request state tuition under sec. 121.79(1)(a). These children should not be counted by the district claiming state tuition as a resident pupil under sec. 121.05 on PI-1563 Pupil Count Report.

In other words:If you have a jail in your district and are required to provide services to a student from another district:Apply for state tuition reimbursementDont count the student

Incarcerated StudentsA district that provides education services to a pupil placed in a childrens home in the district in which he/she has been or could have been counted as a resident pupil may request state tuition as well as count the pupil as a resident pupil under sec. 121.05 on the PI 1563 Pupil Count Report. But:

Incarcerated StudentsState tuition under sec. 121.79(1)(a) is paid based on actual costs. The state equalization aid paid to the district will be deducted from the state tuition claim. If the statewide amount of state tuition claims made during the fiscal year exceeds the legislatures appropriation, all claims are prorated.

Incarcerated StudentsIf you have a jail in your district and are providing services to a student from your own district:Count the student orApply for state tuition

If you apply for state tuition any aid received will be deducted from the claim.

Comparative Cost/Revenue Major RedesignReasons for Change:

Comparative Cost was revised a number of years ago to reflect cost related to each districts resident students. Comparative Revenue still captures revenue for all students.

Comparative Cost uses Funds 10, 21, 23, 27, 29, 38, 39, 41, 50, 80. Comparative Revenue still includes ALL available funds in WUFAR.

There are various accounts in both total revenues and total expenditures that (for a valid reason) are not included in the above measures, and users (both school-finance-savvy and not) struggled to explain the dollar differences between the 2 measures as the change in fund balance (not possible when all the accounts are not used) !!!!

Comparative Cost/Revenue Major Redesign Both Comparative Cost and Comparative Revenue have been revised effective with the 07-08 computation year to address these issues.

Comparative Cost now includes Object 690 for functions 283000, 285000, 289000 in Funds 38 & 39 and backs out a few more accounts attributable to non-residents.

Comparative Revenue now captures only resident revenue, uses only the same funds as in Comparative Cost, and no longer includes revenue received from CCDEBs.

A new reconciliation explains the differences between the Comparative Cost/Revenue measures and total revenues/expenditures, allowing users to tie one to the other.

Comparative Cost/Revenue Redesign (the birds eye view)Old Comparative Cost+ New Revisions= 07-08 New Comparative CostIdentify accounts and make adjustments to get to Comparative Cost.Total Expenditures (i.e. 10E+21E+23E)Old Comparative Revenue+ New Revisions= 07-08 New Comparative RevenueIdentify accounts and make adjustments to Comparative Revenue.Total Revenues (i.e. 10R+21R+23R) Change in Fund Balance

Revenue Limits, Equalization Aid, Comparative Cost/RevenueAdvanced Concepts&Potential Pitfalls

Revenue LimitsSection 1: Successfully Getting from One Year to the Next(a review, but this is important!)

Section 2: New 5-Year Projection Tool

Section 3: THE Most Common Revenue Limit MistakeMade by Districts

Revenue LimitsSection 1: Successfully Getting from One Year to the Nexthow these all work togetherRecurring ExemptionsNon-Recurring ExemptionsNew-Year BaseCarryoverUnderlevy

Recurring Exemptions (Lines 8A-E) are base-building that is, if the district taxes for any of this additional authority, the levy amount is automatically included in the succeeding years base. Any unused Recurring authority is eligiblefor 100% carryover into the next year.

Non-Recurring Exemptions (Lines 10A-C) are not base-building that is, if a district taxes for any of these exemptions, the amount is not included in the succeeding years base.Any unused Non-Recurring authority is not eligible for carryover in the next year districts have one, and only one opportunity to use Non-Recurring exemptions.Revenue Limits

Revenue LimitsRecurring Exemptions

Prior-Year CarryoverTransfer of ServiceTransfer of TerritoryFederal Impact Aid LossRecurring Referenda to Exceed (if year 1 of authority)

Non-Recurring Exemptions

Non-Recurring Referenda to ExceedDeclining EnrollmentOther

DPI is specifically directed to ensure non-recurring exemption authority is not included in the subsequent years base:Revenue Limits121.91(4)(f)2 states: Any additional revenue received by a school district as a result of subds. 1. and 1m. shall not be included in the base for determining the school districts limit under sub. (2m)(e) for the following school year.

1. is the 100% declining enrollment exemption for all districts.1m. is the 100% declining enrollment exemption for both Shawano and Gresham.Declining Enrollment Authority:

Revenue Limits121.91(7) states: If an excess revenue is approved under sub. (3) for a nonrecurring purpose, the excess revenue shall not be included in the base for determining the limit for the next school year for purposes of this section.Non-Recurring Referendum:121.91(8) states: Any additional revenue received by a school district as a result of this subsection shall not be included in the base for determining the school districts limit under sub. (2m) for the following school year.Line 7 Hold Harmless:

Revenue LimitsLine 7 Hold Harmless DefinedThe extra $57,398 is considered a non-recurring exemption!

So, how does this really work when districts can have any combination of recurring and non-recurring exemptions, Line 7 hold harmless, plus an underlevy?

Whats in the base in the next year?

Whats the carryover?

The answers might change the fiscal decisions you make!Revenue Limits.lets look at a number of examples.

Base

$10,000,000$10,000,000Inflationary IncreaseTransfer of ServiceRecurring ReferendumPrior Year Aid plusLevies

(no backouts)#1 - Recurring Exemptions, Levied to Max2008-092009-10

Aid+Levy

Base

This district used all of its authority and has no carryover authority in 09-10, Line 8A.

Base

$10,000,000$9,800,000Inflationary IncreaseTransfer of ServiceRecurring ReferendumPrior Year Aid plusLevies

(no backouts)#2 - Recurring Exemptions, Under-levy2008-09

Aid+Levy

Base

This district will have $200,000 of carryover authority in 2009-10 in Line 8A.Underlevied by $200,0002009-10

Base

Inflationary IncreaseDecl Enroll - $150,000Prior Year Aid plusLeviesminus$150,000#3 - Non-Recurring Exemptions, Levied to Max2008-09

Aid+Levy

Base

This district will have no carryover authority in 2009-10 in Line 8A.2009-10

Base

Inflationary IncreaseLow Revenue IncreaseLine 7 - $46,000Prior Year Aid plusLeviesminus$36,000#5 - Line 7 Hold Harmless (non-recurring), Recurring, Under-levy2008-09

Aid+Levy

Base

This district will have no carryover authority in 2009-10 in Line 8A.Underlevied by $10,000Transfer of Service2009-10

Base

Inflationary IncreaseTransfer of ServiceLine 7 - $46,000Prior Year Aid plusLevies

(no backout)#6 - Line 7 Hold Harmless (non-recurring), Recurring, Under-levy2008-09

Aid+Levy

Base

This district will have $10,000 in carryover authority in 2009-10 in Line 8A.Underlevied by $56,0002009-10

Base

Inflationary IncreaseLine 7 - $40,722Rec Ref - $252,707Prior Year Aid +Levies#7 - Line 7 Hold Harmless (non-recurring), Recurring, Non-Recurring & Under-levy2008-09

Aid+Levy

Base

Plus, this district will have $43,955 of carryover authority in 2009-10 in Line 8A.Decl Enroll - $168,030Underlevied by $252,707$43,9552009-10

Recurring Exemptions (Lines 8A-E) are base-building that is, if the district taxes for any of this additional authority, the levy amount is automatically included in the succeeding years base. Any unused Recurring authority is eligiblefor 100% carryover into the next year.

Non-Recurring Exemptions (Lines 10A-C) are not base-building that is, if a district taxes for any of these exemptions, the amount is not included in the succeeding years base.Any unused Non-Recurring authority is not eligible for carryover in the next year districts have one, and only one opportunity to use Non-Recurring exemptions.Revenue Limits (repeated slide)

Revenue LimitsSection 2: 5-YearRevenue LimitProjection Toolrecurring vs non-recurring or, just a look into the future

Enter Projected DataEnter ALL your information in this table (except for the actual levies):

Revenue Limits

Section 3: THE Most Common Revenue Limit MistakeMade by Districts

Apportioning the LevyWith the PI-401

Most Common Error Made in the Revenue LimitIs this number the same as Line 19 on your final version of the Revenue Limit Worksheet ??????

It should be or you might have overlevied!

Equalization Aid Conundrum #1+$500,000 Shared CostAid = $2,170,110Cost = $3,552,590New Aid = $131,633New Cost = $500,000==Aid = $2,301,743Cost = $4,052,590=26.3%61.1%56.8%At Law

+$500,000 Shared Cost+$131,663 Extra Aid

+$500,000 Shared CostAid = $6,891,058Cost = $19,060,572New Aid = - $200,783New Cost = $500,000==Aid = $6,690,266Cost = $19,560,572=- 2.49%36.2%34.2%At LawEqualization Aid Conundrum #2

+$500,000 Shared Cost-$200,783 Less Aid

Equalization Aid HintsDistrict Variables:

MembershipProperty ValueShared CostState Variables:

Primary GuaranteeSecondary GuaranteeTertiary GuaranteePrimary Cost CeilingSecondary Cost Ceiling

Comparative Cost/Revenue Redesign (the birds eye view)Old Comparative Cost+ New Revisions= 07-08 New Comparative CostIdentify accounts and make adjustments to get to Comparative Cost.Total Expenditures (i.e. 10E+21E+23E)Old Comparative Revenue+ New Revisions= 07-08 New Comparative RevenueIdentify accounts and make adjustments to Comparative Revenue.Total Revenues (i.e. 10R+21R+23R) Change in Fund Balance

Analysis ToolsWhats (New) On The Net?SFS Homepage > District Budget Dev & Planning http://dpi.wi.gov/sfs/index.htmlLook for pre-populated 65.90 for your Annual Meetings !

Common School FundAKALibrary Aid

Common School Fund - Finance Team TimelineJune 30 Districts obtain census information which is used in following year for calculation of Library Aid. Census numbers are due in August.

January - The Board of Commissioners of Public Lands (BCPL) informs the Department of Public Instruction (DPI) of the estimated interest that will accumulated in the Common School Income Fund by April 15th. This is the estimate of funds which will be available for Library Aid. Calculate a state wide per pupil amount. Calculate estimate for each district.

This is usually a fairly good estimate.

April The BCPL informs the DPI of the actual total interest that has accumulated in the Common School Income Fund. Calculate actual aid available per census.

May 1st Library Aid payment made to districts. Funds to be spent during current fiscal year.Common School Fund - Finance Team Timeline

Common School Fund - ReminderIt is essential that districts spend all their Common School Fund library aid, including carryover, in the same year they receive it.

Not doing so could cause the district to lose this aid.

Common School FundThe common school fund payment to districts for the 2008-2009 school year will be $ 28.36567 per census student. Although this is still an estimate, and cannot be guaranteed, it is a conservative estimate and the department feels confident that this is the amount that will be distributed.

Common School FundPayments to districts will be made on Monday, April 27, 2009.

Each district must spend their total Library Aid allocation for appropriate library materials by June 30 of that same year.

These materials include books, newspapers, periodicals, other media resources, and to a limited extent, computers.

Common School FundThe calculation of each school districts Common School Fund (library aid) is available on the team's website. Specifically, Addenda A82 in your districts 2009 Budget Report can provide information about carryover and current year library aid.

Common School FundTo see the information in A82 follow the following steps:From the finance team web page http://dpi.wi.gov/sfs/index.html, go into the School Finance Reporting Portal and navigate to your district.

Click on the Financial Data Home and go into the Budget Report (PI-1504).

Click on the current year 2008-2009 and continue past the password.

On the left sidebar, click on: Addenda.

On the right side, click on: Addendum A82.

Common School FundIn the table labeled Current Year Budget you will see a spot for a carryover amount from the previous year. If dollars are in this box, it represents dollars you already received but have not yet spent appropriately. For this year these unspent dollars will be allowed to carry over into this current year.

Since districts have already received this carryover money, it is assumed that it is part of your fund balance. It is imperative that districts spend all dollars received, including any carryover, by the end of this fiscal year.

Common School FundBesides the carryover amount, the table will also include a dollar amount received related to your reported Census Estimate. The carryover plus the census estimate gives you the estimated amount available to spend. Although this is considered a good estimate, the actual amount will not be known until April 27th, when the dollars are actually sent to the schools.

Common School FundFor your convenience, we have included in the Addenda A82 Table the amounts you reported in your 2009 budget report. A positive number on the bottom line of the table (Allocation Remaining to Spend) is an indication that you may need to consider spending more than you have planned.

Common School Fund - ReminderWith the passage of the state budget in October 2007, s.43.70(3), Wis. Stats., the use of the Common School Fund, was amended.

With the amendment, school districts may now use up to 25 percent of the [CSF] moneys received in a fiscal year to purchase school library computers and related software to be housed in the school library.

These purchases must be made in consultation with the school districts library media coordinator, as per PI 8.01(2)(h), Wisconsin Administrative Code.

Common School FundFor further information about the Common School Fund, go to:http://dpi.wi.gov/sfs/comsch.html

If you have questions regarding school library purchases that meet the requirements of the Common School Fund contact Nancy Anderson, School Library Media Consultant, Instructional Media and Technology (608) 267-9287 nancy.anderson@dpi.wi.gov For questions regarding school library aid and accounting contact Brad Adams, School Finance Consultant (608) 267-3752 bradley.adams@dpi.wi.gov

Transfer of Service

Transfer of ServiceWhat 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

Transfer of ServiceWhat Transfer of Service does:

helps the district cover unexpected costs for incoming Spec Ed/ESL (English as a Second Language) transfers

helps the district cover the cost of new operation expenses that were once provided by another municipality

Transfer of ServiceWhat Transfer of Service is not:

a payment from the State

a payment from another school district

Transfer of Service

Instructions can be found at:

http://dpi.wi.gov/sfs/transerv.html

Transfer of Service

Work in Progress We may see changes to the on-line format but On-line reporting is functional.On-line reporting is the required method

Click here - Transfer of service test site

Transfer of ServiceDistrict Log-In

Transfer of ServiceDistrict DashboardThis screen will allow the district to see at a glance where they are in regards to all Transfer of Service requests. The 1st gauge indicates that you are requesting information for 5 pupils and still need other districts to verify the information for 2 of them.The 2nd gauge indicates that other districts are waiting for your verification to their requests.Some cost estimates and district contacts are also displayed.If the district contact information is incorrect, it should be updated.

Transfer of ServiceSpecial Education District Student Entry Add or amend pupil information for Part A of the request.Once a student is entered they appear on a student list for that district as shown.The status icon indicates that Part B is either being requested or has been completed.

Transfer of ServiceAmending or adding pupil information.The steps are listed on the left sidebar. As you read or fill-in information, click next to move top the next screen.

Transfer of ServiceDistrict Student Entry Part A Wizard Steps

Transfer of ServiceDistrict Student Entry Part A Wizard Steps

Transfer of ServiceDistrict Student Entry Part A Wizard Steps

Transfer of ServiceDistrict Student Entry Part A Wizard Steps If A in the prior step is selected this page is skipped.If B is selected Only State and Country are displayed.If C is selected Only County is displayed.

Transfer of ServiceDistrict Student Entry Part A Wizard Steps

Transfer of ServiceDistrict Student Entry Part A Wizard Steps

Transfer of ServiceDistrict Student Entry Part A Wizard Steps Calculations mirror the calculations as defined in the PI-5001 spreadsheet.

Transfer of ServiceDistrict Student Entry Part A Wizard Steps

Transfer of ServiceDistrict Student Entry Part A Wizard Steps If a district was picked in step 4 a list of TOS contacts for that district will be displayed below and an e-mail will be sent to that contact instructing them to fill out Part B.

Transfer of ServiceDistrict Student Entry Part A Wizard Steps This will be displayed after the e-mail has been sent.

Transfer of ServiceHow to add or delete a contactIn the Reporting Portal - Navigate to your district (Password will be needed).

Transfer of ServiceHow to add or delete a contactClick on District Contacts

Transfer of ServiceHow to add or delete a contactYou can click on a name to amend or remove them

Or click on Add a Contact

Transfer of ServiceHow to add or delete a contactYou can click the appropriate button to add the current name as a TOS contact or to delete them as a TOS contact.

Transfer of ServiceHow to add or delete a contactOr you can add a new name

Transfer of ServiceWhat about Part B?If you are being asked to verify previous students that transferred to another district, click on Part B at the top scanbar. Names of students still needing your verification will be identified.Click on Verify and answer the questions.

Transfer of ServiceWhat about Part B?

Transfer of ServiceWhat about Part B?

Transfer of ServiceWhat about Part B?

Transfer of ServiceWhat about Part B?

Transfer of ServiceWhat about Part B?

Transfer of ServiceWhat about Part B?

Transfer of ServiceWhat about Part B?

Transfer of ServiceSummary SheetOnce all individual student requests are completed and verified, when needed, the summary sheet can be completed by clicking on Summary at the top scanbar.The Summary Sheet is required and due on or before August 1st (tentative date).

Transfer of ServiceSummary Sheet

Transfer of ServiceSummary SheetOnce this sheet is submitted, the TOS request process is completed. It can be amended up to the due date.Estimate is Auto FilledExpected is Your Actual Request

Transfer of ServiceSummary SheetThere is a separate Summary Sheet for Special Education and Limited English Proficiency.

Both Summary Sheets are due on or before August 1st. (tentative)

The Summary Sheet is the actual Transfer of Service request and completes the process for the TOS request.

Transfer of ServiceFor further information about Transfer of Service, go to:http://dpi.wi.gov/sfs/transerv.html

Or contact:Brad Adams, School Finance ConsultantBradley.Adams@dpi.wi.gov608-267-3752

Odds and EndsAccounting for an HRA;Fund 73 Reminders; Summer School Fee reminders;

HEALTH REIMBURSEMENT ARRANGEMENTSAccounting for an HRA Plan for DPI PurposesWhat makes the accounting complicated is that each individual district determines the type of arrangement

The proper accounting of an HRA plan for DPI purposes is dependent on the type of arrangement the district has

HEALTH REIMBURSEMENT ARRANGEMENTSResources available:http://www.dpi.wi.gov/sfs/presentations.htmlWASBO Accounting Seminar Power Point and Handout from the session titled Accounting for Health Reimbursement Arrangements (HRA)

Fund 73 - Post Employment Benefit TrustResources available:http://www.dpi.wi.gov/sfs/emp_benefit_trust_fund.htmlWASBO Accounting Seminar Power Point and Handout from the session titled Essentials of Fund 73Handout contains a revised workbook for accounting of trust activityNo new accounting rulesJust clarifies and provides additional examples

Fund 73 - Post Employment Benefit TrustSegregated Funds:Physical segregation of trust assets must be madeAssets are titled in the trust nameNever pooled cashNever part of investment pool in districts nameMust be available to pay benefits

Fund 73 - Post Employment Benefit TrustSegregated Funds:Contributions are physical movement of funds from the District assets to the trust assetsPayments of benefits are physical payment from the trust assetsContribution MUST be physically made by June 30thA few districts lost an expenditure in 2007-08 because the physical movement was made after June 30th

Summer SchoolFees

Summer School - FeesIf the district claims state aid under s.121.14, Wis. Stats

There shall be no cost to the resident student beyond individual use supplies (towels, gym clothes, band instruments, notebooks, pencils), and textbooks or similar items (workbooks). Fees for equipment, admission to a facility or event, transportation, shuttling, and food and lodging for off-campus activities are prohibited if a district claims state aid.

Items for which fees are charged must be legally permitted and actually purchased for summer school use.

Summer School - FeesIf 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.

Summer School - FeesIf the district does not claim summer school aid

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, however, eligible for state aid or categorical aid and may not be claimed for summer school membership.

Summer School FeesHow do auditors review summer school fees?NEW - Audit procedures available to auditors at: http://www.dpi.wi.gov/sfs/m_audit.html titled Sample of Summer School Fee Auditing

Summer School FeesWhat will auditors ask for?PI-1804W-2 (Worksheet)Summer school list of classes and feesShould not be a flat feeExpenditures (by course) for the classes that charge feesRun a detailed report of the appropriate function and object and identify for auditor those used for summer schoolMay be asked to pull some invoices

Summer School FeesWhat will auditors test for?Fees are not charged as a flat fee across all coursesCosts identified by course are eligible costsCosts that are eligible do not exceed fees charged (by course)

Fees should not be a flat fee across the board. If it is, each course must be supported by enough allowable cost to justify the fee.

Example: FeePupilsTotalElementary Gym Class $20.00 25$ 500Extended Year Mathematics $ 0.00 30$ 0Beginning Strings$50.00 20$1,000Drama Class $50.0020$1,000

Auditor does not need to check expenditures for Math class. Summer School - Fees

Detail of the Elementary Gym Class Towels $ 225 Pens, pencils $ 75 Uniforms $ 750 Water bottles $ 75 Handouts $ 25

Total Spent: $ 1,150Total Collected:$ 500 OK

Summer School - Fees

Detail of the Beginning Strings Workbooks $ 200 Pens, pencils $ 50 Band instruments $ 250

Total Spent: $ 500Total Collected: $ 1,000 Not OK

Summer School - Fees

Detail of the Drama Class Wardrobe (made by pupils) $ 1,500 OK if kept by pupilTeacher $ 2,950 Not allowable Lighting $ 500 Not allowable Handouts $ 240

Total Spent: $ 5,190$ (3,450) Allowable Spent: $ 1,740 Total Collected: $ 1,000 OKSummer School - Fees

FindingsElementary Gym Class OKExtended Year MathematicsOKBeginning StringsNot OKDrama Class OK

Result: DPI will reduce pupil minutes for the Beginning Strings class. Depending on the FTE loss incurred, there could be a revenue limit penalty.

Summer School - Fees

Summer SchoolFor further information about Summer School, go to:http://www.dpi.state.wi.us/sfs/summ_sch.html

Contacts: Direct general summer school questions to Nancy Mueller: (608) 266-8938 Email Nancy Mueller: nancy.mueller@dpi.wi.gov Direct questions concerning financial issues to Brad Adams: (608) 267-3752 Email Brad Adams: bradley.adams@dpi.wi.gov

Thanks For Listening Any Questions?Dont hesitate to call or email with questions!Brad Adams 608-267-3752 bradley.adams@dpi.wi.gov Karen Kucharz Robbe 608-267-9707 karen.kucharzrobbe@dpi.wi.gov Lori Ames 608-266-3464 lori.ames@dpi.wi.govDavid Carlson 608-266-6968 david.carlson@dpi.wi.gov Jerry Landmark 608-267-9209 jerome.landmark@dpi.wi.gov

**These are important changes and they will be announced to school districts a number of times in the upcoming months.

*Currently have approximately 10-15 paper mailings per year sent to the school district administrator.

Most staff access this information not as a paper copy from the superintendent but from a listserve message or via Late Breaking Information.

The SFS team will continue to send when appropriate a paper mailing to individual districts.

The newsletter concept was introduced to school district administrators and staff with the January 5 newsletter. *The SFS team felt that districts are ready to receive information electronically as reflected in the success of the teams listserve.

We think that our new communication strategies will improve communication with school districts.

These are tough times for the finance team as to budgets and the need to effectively utilize resources.*A little reassurance.

The listserve will continue to provide weekly updates on a need basis.*To ensure that district administrators and district staff receive notice of the information, the team is creating a new report that will be pre-populated to the extent that it can with the names and e-mail addresses of staff currently on file at the department.

The district administrator or designee will submit this report with the names of staff to receive the newsletter, listserve bulletins and program area updates such as special education and transportation. This report is to ensure that there is no lapse in the right district staff getting the right information in a timely manner.

This report will also allow the superintendent to identify and authorize staff to submit data to the department. There will no longer be one password for all SFS reports. This is part of the teams report and data security upgrade.*The new PI 1500 will be a required report and will open June 3 and will be due June 19. This will give the finance team time to prepare the July 1 newsletter that will notify districts of their July 1 general aid estimate.

More detailed information about the PI 1500 will be forthcoming over the next few weeks.********************************************************************************Because it is a recurring exemption, it will have an effect on the following year revenue base. It will also impact the shared costs which will impact the following years general aid.

Handout of State Stat. 121.91(4)(a).

*While a district will likely have to front the expense in the initial year, transfer of service will allow the district to reimburse itself in the following fiscal year.

Sometimes, especially in the case of a transfer from another government unit, the district will know the exact cost in advance and then is able to apply within the same fiscal year as the initiation of the new expense.*******************************************************