the future of financial data collection 12 th annual ecos seminar friday, april 29, 2005
TRANSCRIPT
The Future of Financial Data Collection
12th Annual ECOS SeminarFriday, April 29, 2005
Today’s Topics Resources Available Upcoming Changes to Financial Data
Collection Revised Accounting Handbook Relationships The Reality of Converting Handbook Myths Exposed Frequently Asked Questions
Today’s Schedule
9:00 – 9:45 – Presentation 9:45 – 10:00 – Group work on
presentation topics 10:00 – 10:30 – Q & A on items
developed during group work
The Future of Financial Data Collection
Fiscal Year 2006-07 Financial data collection will be electronic
Project to be accomplished in stages First: upload of general fund revenue and
expenditure transactions from SAU accounting system to MDOE financial warehouse for fiscal year 2006-07
Second: standardize special revenue data collection with goal to eliminate additional paper reports; date of implementation not yet certain
The Future of Financial Data Collection Standardization of Data
Model Charts of Account Outline of data points that MDOE needs to
collect Model charts may differ from needs of a school
administrative unit; if a unit needs more detail, use handbook to select correct code. If a unit needs less, that’s OK – just because it’s on the model chart doesn’t mean you will have any transactions coded to that particular line
MDOE will run queries on this data from a financial warehouse to obtain information for subsidy calculation, to update EPS model and to meet other fiscal information needs and requirements
The Future of Financial Data Collection Data warehouse will also be a management
tool, offering a reporting feature for use by school finance officials and other constituencies, as well as MDOE
“Dry run” of data warehouse upload process to troubleshoot data problems will occur in Fall, 2005 with selected units
Based on upload test, some additional changes may be made to the handbook or model charts; after that, changes will only be made annually in time for start of next budget cycle
Revised Accounting Handbook Handbook Components Revised to
date Expanded field sizes Alignment of codes to Federal handbook New codes to collect data for EPS
use of cost centers to discern level of instruction
function codes to track EPS targeted funds and to update components of EPS per pupil rate, such as system admin, OMP, etc.
Revised Accounting Handbook
Changes to come Standardization of other funds and
additional model charts In special revenue accounts, standardized
codes likely for certain programs, such as Title I, Maine Care, Local Entitlement and others
Model charts for special revenue programs and nutrition programs
Revised Accounting Handbook Basic Definitions which create levels of data
detail Fund – a fiscal and accounting entity created by
a school administrative unit for the purpose of tracking the finances of a particular activity or group of activities
Program – a plan of activities and procedures designed to accomplish a predetermined objective or set of objectives
Revised Accounting Handbook Basic Definitions, continued
Function – describes the activity for which a service or material object is acquired
Object – describes the service or commodity obtained as the result of a specific expenditure
Cost Center – this classification segregates expenditures by instruction level or system-wide costs
Revised Accounting Handbook
Sample Coding for Secondary Co-Curricular Programs*
Fund Program Function Object Cost Center Description
100 9500 1000 1500 31 Stipend
100 9500 1000 2000 31 Benefits 100 9500 1000 5800 31 Travel (not prof. develop.)100 9500 1000 6100 31 Program Supplies100 9500 1000 8000 31 Conference Fees100 9500 2700 5140 31 Transportation
*To be used by MDOE for data collection
Revised Accounting Handbook
Sample Coding for Secondary Co-Curricular Programs*
Fund Program Function Object Cost Center Description
100 9500 1000 1500 31 Stipend100 9500 1000 2000 31 Benefits 100 9500 1000 5800 31 Travel (not prof. develop.)100 9500 1000 5805 31 Travel – Band100 9500 1000 6100 31 Program Supplies100 9500 1000 8105 31 Conference Fees – Band100 9500 2700 5140 31 Transportation100 9500 2700 5145 31 Transportation – Band
*As used by an actual school administrative unit
Revised Accounting Handbook Cost Centers Cost center = school by level of instruction or
grouping of costs not easily allocated to a school as they cross the entire system or cross a range of instruction levels
Uses of data delineated by the handbook’s cost center definitions: To meet statutory requirements To update the EPS model – “high performing” schools
data To provide the ability for “like” schools to compare to
one another To provide information to answer questions
concerning school costs from constituencies (i.e. your board, parents, the press)
Revised Accounting Handbook – Cost CentersSystem – wide
#90
By Elementary School (K-8)
#01- #19
By Secondary School (9-12)
#30 - #38
By Elementary Grade Level (K-8)
#95
By Secondary
Grade Level (9-12) #99
Special Ed Support Services
Custodial & Building
Operation
Custodial & Building
Operation
English as a Second Language
English as a Second Language
Student Health Services
Extra-Curricular Programs
Extra-Curricular Programs
Summer School Summer School
Student Assessment
Co-Curricular Programs
Co-Curricular Programs
Alternative Ed Alternative Ed
Curriculum Coordination
Instruction Instruction Non Public School Programs
Non Public School Programs
System Administration
Instructional Staff Training
Instructional Staff Training
Special Education Programs
Special Education Programs
Building Maintenance
Instructional Technology
Instructional Technology
Approved Gifted & Talented Programs
Approved Gifted & Talented Programs
Major Capital Construction
School Administration
School Administration
Other Student Support Services
Other Student Support Services
Student Transportation
Minor Capital Minor Capital
Community Service
Library Library
Debt Service Guidance Guidance
Food Service Post Secondary Enrollment
Relationship of Essential Programs and Services to the Revised
Accounting Handbook
Data to update many components of the EPS model will be derived from your financial data as coded to model chart specifications When trying to compare your unit to the EPS
model, refer to handbook definitions for what’s included in per pupil amounts. For example, system administration = Superintendent’s Office, Central Office and School Board.
EPS Targeted Funds in the Revised Accounting Handbook
Handbook Coding Utilized: Resources for K-2 Instruction – program
code 1120 Resources for Academic Student
Assessment – function code 2240 Resources for Instructional Technology-
function code 2230
EPS Targeted Funds in the Revised Accounting Handbook
More clarity needed from MDOE around what can be included under targeted funds Per PL 2005, Chapter 12, the
Commissioner shall provisionally adopt rules to establish requirements for the use of targeted funds by December 2, 2005.
Relationship of the Revised Accounting Handbook and MEDMS
MDOE Data Warehouse is one of the last phases of the MEDMS project
Salary data coded in financial systems should mirror staff data on MEDMS system
Ultimate goal to link student, staff and financial system for generating calculated reports, such as subsidy printouts
Relationship of the Revised Accounting Handbook and MEDMS
As an example of how data should mesh between the two components of MEDMS, here is an actual question from a school administrative unit: “We have a Curriculum Coordinator who is in charge of Curriculum, Student Assessment and Instructional Staff Training. Would her salary and benefits be spread over these three areas, as well as the cost of her secretary”? If this individual is coded as such in the staff file
system of MEDMS, then yes, salary and benefit lines would be allocated across the three functions. If this individual is NOT shown in MEDMS as working in those three areas, either her MEDMS record will need to be updated to reflect these various duties or she needs to remain in the accounting system coded only as the Curriculum Coordinator.
What’s the relationship of the EFM 45 report in the new system?
EFM 45 report will no longer exist in its current format FY 2005-06 scheduled to be last
submission in current format For those units utilizing the revised
handbook for the FY 2005-06 year, refer to the model charts of account or the instructional EFM 45 to discern proper placement of items
The Reality of Converting
Real life experience from Patti Riggs
Common Myths About the Revised Handbook and Model Charts
MDOE wants salary data by Ed Tech I, II and II! Not true, HOWEVER, some school units
want to segregate their data in that way therefore, the accounting handbook provides codes but MDOE will not collect the data in that manner; we will collect at object code 1020 for all Ed Techs.
Common Myths About the Revised Handbook and Model Charts
MDOE wants to know if textbooks are soft cover or hard cover! Again, not true. The accounting
handbook does provide codes for hard cover versus soft cover texts for those units that wish to use them but MDOE will collect textbook data at the 6400 object code level for all instructional texts.
Common Myths About the Revised Handbook and Model Charts
MDOE wants me to distinguish between Administrators and Assistant Administrators, using different object codes! Wrong again! The accounting handbook
provides codes to do this for those units that wish to but again, MDOE will only collect data at the 1040 object code level. We do not need to distinguish between these two job classifications.
Frequently Asked Questions Are cost centers pre-determined or am I allowed to
use my own set of cost center numbers? They are pre-determined within a range of numbers. For schools with grade configurations of K-8, use numbers 01-19. For schools with grade configurations of 9-12, use 30-38. For Career and Technical Centers, use 39
Are copiers considered technology equipment? No, technology equipment is only computer hardware, software and other related items such as cables. If copiers are paid for via a lease, code them to object 4440 (or 4445 if you wish to segregate from other rentals) in whichever program/function that the payment is budgeted.
Frequently Asked Questions In reviewing the model charts, there is a K-2 template and a K-8
template; which do we use? If we break down our elementary school into K-2 and 3-6, how do we report the middle school? In my unit, 6-8 is currently broken down in its own budget. Will that change to a K-8 budget or a further breakdown of K-2, 3-5 and 6-8?
Under the Revised Accounting Handbook, cost centers are used to track costs by building within grade levels. For buildings that house grades K-8, an individual cost center number between 01 and 19 should be assigned to each school. Within the building configuration, you will need to designate K-2 programs by program code 1120, for EPS purposes. For example, expense coding for a grade one teacher located in an elementary school would look like this: 100-1120-1000-1010 -01 Coding for a grade 7 teacher salary could look like this: 100-1100-1000-1010-02 MDOE is not requiring you to segregate middle school grades using cost centers at this time.
Frequently Asked Questions Why can’t we just use the same object
code for health insurance for all employees?
The EPS model wants to see benefits by employee category so that a ratio of benefits to salary by category can be derived and used to create the total allocation
If secondary students go whale watching as a class science field trip, how do I code that?
Use the 1200 program code, 2700 function code and then the appropriate object code.
Frequently Asked Questions What is the difference between function
code 2600 and 2620? Also, where do I put maintenance supplies?
2620 is for system-wide maintenance such as building and equipment repairs, as well as grounds keeping, to include snow plowing. Code maintenance supplies to this function, using 90 in the cost center field. 2600 is used for items in each building that are neither maintenance or custodial such as classroom lease purchases and safety and security costs. These should be coded by instruction level cost center.
Frequently Asked Questions How do I code costs for custodian overtime
during co and/or extra curricular events? MDOE’s guidance is to code these expenditures to co and/or extra curricular programs so that these costs are reflected in those programs when financial data is reviewed to update the EPS model. Doing so will reflect a true cost of those events as without those events, these specific overtime expenditures would not be needed.
Frequently Asked Questions There are tuition reimbursement lines throughout the
various programs and functions, in addition to a function code for “Instructional Staff Training”; is that a more narrow definition of tuition reimbursement to be coded there?
Actually, in this instance, units have some choice. Some Business Managers have stated that they would prefer an all inclusive professional development code for instructional staff and others prefer to keep it within the programs. When DOE needs information regarding professional development expenditures under EPS, we will be able to query both tuition reimbursement lines and the more inclusive function code to obtain what we need, depending on how units prefer to code those transactions.
FINALLY…….. The Revised Accounting Handbook and
Model Charts of Account are still in draft form through fall, 2005. Once changes are incorporated in late fall, no additional changes will be made for a year and on an annual basis thereafter. Hard copies of the documents will not be mailed – print from the Web documents to ensure you have the most recent information.