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.