paul stone mike dooley, csbo ramona garner daniel lunghofer, mpa april 25, 2014 2014 annual...
TRANSCRIPT
2014 Annual Conference 1
SCHOOL FINANCIAL SERVICES UPDATE
Paul StoneMike Dooley, CSBO
Ramona GarnerDaniel Lunghofer, MPA
April 25, 2014
2014 Annual Conference 2
Paul StoneSchool District Accounting Supervisor
(360) [email protected]
ACCOUNTING MANUAL UPDATES
FY 2013–14FY 2014–15
2014 Annual Conference 3
A Second Addendum to Bulletin No. 006-13 is in process at OSPI. It will be available on the OSPI website when completed.
The State Auditors Office (SAO) changed their auditing practices.
GASB Statements 63 and 65 changed the GAAP standard layout for financial statements.
The conventional accounting practices for Deposit Arrangements with ESDs for Employee Compensated Absences have been radically modified.
The Second Addendum to the 2013–14 Accounting Manual
2014 Annual Conference 4
Previously, SAO was able to provide an opinion on financial statements based solely on presentation in accordance with an Other Comprehensive Basis of Accounting (SDAM and F-196).
Only districts filing Comprehensive Annual Financial Report (CAFR) were audited to GAAP.
SAO Dual-Opinion Reporting 2013–14 SDAM Addendum
2014 Annual Conference 5
AICPA peer review of SAO auditing practices. New SAO “dual-opinion” audits. Financial Statements compared against two
different standards.◦OCBOA presentation based on statutory guidance
(SDAM and F-196.)◦GAAP presentation based on governmental accounting
standards.
SAO Dual-Opinion Reporting 2013–14 SDAM Addendum
2014 Annual Conference 6
Timing impact: As GASB Standards become effective, the SAO audits to the new rules.
Guidance originally prepared for inclusion in the SDAM for the 2014–15 fiscal year has been moved up and becomes effective in the current fiscal year.
SAO Dual-Opinion Reporting 2013–14 SDAM Addendum
2014 Annual Conference 7
GASB Concepts Statement 4 introduced idea of “net position” and inflows/outflows of resources.
GASB Statements 63 and 65 changed the GAAP standard layout for financial statements as a result.
We are changing the balance sheet to conform to these new principles.
FY 2013–14 Balance Sheet Changes
2014 Annual Conference 8
Inflows/Outflows of Resources New focus is on the flows of resources:◦ Inflows of resources: acquisition of net assets.◦Outflows of resources: consumption of net assets.◦Net assets: Assets over liabilities.
Additional focus on applicable period:◦ If flow of resources applies to a future period, considered
“Deferred Inflows/Outflows of Resources.”
FY 2013–14Accounting Manual Updates
2014 Annual Conference 9
Deferred Revenue is no longer used.
General Ledger Changes (2013–14) GL 750: Unavailable Revenue. GL 760: Unavailable Revenue—Taxes
Receivable. These are no longer considered liability accounts.
FY 2013–14 AddendumDeferred Inflows of Resources
2014 Annual Conference 10
FY 2013–14 Deferred Inflows of Resources
2014 Annual Conference 11
LIABILITIESAccounts Payable $ 440,879.24 Payroll Deductions and Taxes Payable $ 1,761.93 Due To Other Governmental Units $ 291,330.40 Estimated Employee Benefits Payable $ 1,620,037.46 Due To Other Funds $ 27,127.64 TOTAL LIABILITIES $ 2,381,136.67
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue—Taxes Receivable $ 9,940,581.43 TOTAL DEFERRED INFLOWS OF RESOURCES $ 9,940,581.43
FUND BALANCENonspendable Fund Balance $ 400,000.00 Restricted Fund Balance $ 3,586,808.53 Committed Fund Balance $ 7,000,000.00 Assigned Fund Balance $ 17,799,336.50
Unassigned Fund Balance $ -
TOTAL FUND BALANCE $ 28,786,145.03
TOTAL LIAB+DIR+FB $ 41,107,863.13
FY 2013–14Deferred Inflows of Resources
2014 Annual Conference 12
Fiduciary Fund: General Ledger Changes (2013–14) GL 856: Held in Trust for Pensions and Other
Employment Benefits. (PTF) GL 857: Held in Trust for Private Purposes. (PPTF)
Fiduciary Fund year-end entries should close to these accounts.
Balances in GL 889 should be JV’d to the appropriate account.
FY 2013–14 AddendumFiduciary Funds
2014 Annual Conference 13
Current F-196 Guidance in the ABFR
New GASB 63 Standard
Change in the Fund title: Statement of Fiduciary Net Assets Statement of Fiduciary Net Position
Change in the description of the title for the Fund Balance:
NET ASSETS NET POSITION
Change in the specific GL Fund Balance trust account:
Assigned to Fund Purposes HELD IN TRUST FOR (reason)
Change in the description of the total Fund Balance:
TOTAL NET ASSETS TOTAL NET POSITION
Change in the title for the Statement of Changes:
Statement of Changes in Fiduciary Net Assets
Statement of Changes in Fiduciary Net Position
Change in description of Beginning Net:
Net Assets—Beginning Net Position—Beginning
Change in description of Ending Net:
Net Assets—Ending Net Position—Ending
FY 2013–14 Fiduciary Fund F-196 Changes
2014 Annual Conference 14
Per GASB 10 and SAO: Deposit arrangements for compensated absences are not risk pools.
Assets held by the ESDs on behalf of the districts are still the property of the school districts and balances should be reported on financial statements.
The current practice of recording the periodic payments to the ESD as expenditures for compensated absences is not correct.
FY 2013–14 Deposit Arrangements with ESDs for Compensated Absences
2014 Annual Conference 15
Guidance applies only to districts that are members of their ESD’s Compensated Absence Pool.
Periodic deposits are not considered expenditures because GAAP dictates there is no liability until you have a change in the current financial resources.
Under the current practice, employees have not taken sick leave, districts are setting aside funds
in anticipation.
FY 2013–14 Deposit Arrangements with ESDs for Compensated Absences
2014 Annual Conference 16
An adjusting entry is required to recognize the district’s pool balance as an asset as of August 31, 2013.
FY 2013–14 Accounting Treatment for Compensated Absences
Initial Recognition of Asset on Financial Statements
General Ledger Account
Sub- Ledger Acct code Account Title Applicable
Fund Debit Credit
451 Investments/Cash with Trustee GF XX
898 Prior Period Restatement GF XX
Initial Entry: To record balance held by ESD for SD Compensated Absences. Recognize asset as a Prior Period Adjustment.
2014 Annual Conference 17
Current year adjusting entry required. Periodic expenditures previously recorded should
be credited. The debit is an increase in GL 451 Investment/Cash with Trustee.
FY 2013–14 Accounting Treatment for Compensated Absences
Adjusting Entry for periodic expenditures previously recordedGeneral Ledger Account
Sub- Ledger
Acct code
Account TitleApplicable
FundDebit Credit
451 Investments/Cash with Trustee GF XX 530 Y Expenditures (Sick Leave Cashout) GF XX
2014 Annual Conference 18
New accounting procedure for future periodic payments for Compensated Absence amounts sent to the ESD and held in reserve.
FY 2013–14 Accounting Treatment for Compensated Absences
Monthly payroll benefit assessments for Compensated Absences451 Investments/Cash with Trustee GF XX 241 Warrants Outstanding GF XX
Record the monthly Compensated Absence assessment as an increase in Investment/Cash with Trustee. Payments to ESDs.
Two distinct types of expenditure claims.◦ Annual Compensated Absence buy-back elections.◦ Compensated Absence cash-outs upon termination.
OMB Cost Circular A-87 does not allow termination payments for unused leave to be directly charged to Federal programs. These costs may only be indirectly charged to Federal programs.
Fringe benefit rates charged to federal programs are being questioned by SAO as unallowable. OSPI and the ESDs are working with SAO on this issue, stayed tuned.
2014 Annual Conference
FY 2013–14 Deposit Arrangements with ESDs for Compensated Absences
19
2014 Annual Conference 20
FY 2013–14 Accounting Treatment for Compensated Absences
Recognition of the expenditure occurs when there is a change in the current financial resources.
Recognition of the expense for Compensated Absence cash out or buy back
530 YExpenditure (Compensated Absence Buyback/Cashout)
GF XX
241 Warrants Outstanding GF XX
To record the employee claim for compensated absences. Payment made to employee OR former employee. Termination payments for Compensated Absences can not be directly charged to Federal Programs.
2014 Annual Conference 21
The new procedure to record the reimbursement of funds from the ESD.
FY 2013–14 Accounting Treatment for Compensated Absences
ESD reimburses District for the claim; this reduces Investment/Cash with Trustee.
240 Cash GF XX
451 Investments/Cash with Trustee GF XX
To record reimbursement from ESD for Compensated Absence claim. This reduces the Investment/Cash with Trustee.
2014 Annual Conference 22
The district’s balance in the pool is reflected both as an asset, as well as in the appropriate GL account for the ending fund balance.
Use GL 888, Assigned to Other Purposes: if there is no formal action or language in the agreement.
Use GL 870, Committed for Other Purposes: for pool balances committed by formal Board action.
Use GL 831, Restricted for Compensated Absences: If the written agreement with the ESD explicitly states pool funds may only be used for compensated absences.
At this time, there is no evidence any pools are restricted.
FY 2013–14 Accounting Treatment for Compensated Absences
2014 Annual Conference 23
FY 2013–14 Accounting Treatment for Compensated Absences
Year 1: YEAR END CLOSING ENTRY TO ADJUST ACCOUNTS. (Assigned assumption)
890 Unassigned Fund Balance GF XX
888 Assigned to Other Purposes GF XX
To recognize the Assigned, Compensated Absences Fund Balance. Corresponds to amount held in GL 451 for
purpose.
FY X+1 YEAR END CLOSING ENTRY TO ADJUST ACCOUNTS. (Assigned assumption)
890 Unassigned Fund Balance GF XX XX
888 Assigned to Other Purposes GF XX XX
To adjust Assigned Compensated Absences Fund Balance to actual amount recorded in GL 451, Investment/Cash
with Trustee asset account.
2014 Annual Conference 24
New GL 660: Unearned Revenue.
This account is for recording money that the district has received, but has not yet earned. It is a liability because receipt of the money is contingent upon the district performing some service.Example: a parent pre-pays full-day kindergarten tuition in August. The district records it as unearned revenue.
Other Items in 2013–14Addendum
2014 Annual Conference 25
FY 2014–15 Accounting Manual Revisions
Are we having fun yet?
2014 Annual Conference 26
The Accounting Manual is published cooperatively by OSPI and SAO.
The School District Accounting Advisory Committee (SDAAC) makes recommendations for updates to the manual in their role of advising on accounting, budgeting, financial reporting, and related matters.
SDAAC meetings are scheduled now through December 2014 for the 2015-2016 Accounting Manual updates.
The SDAAC web page:◦ http://www.k12.wa.us/safs/PUB/COM/SDAAC.asp.◦ Has the complete description of changes to the 2014-2015
manual.◦ Has meeting agendas, materials, list of committee members,
etc.
FY 2014–15Accounting Manual Updates
2014 Annual Conference 27
New Program 03 Basic Education–Dropout Reengagement, has been added.
New Activity 33 Curriculum, has been added. Inventory is allowable in the Capital Projects Fund
(CPF). We have revised to/from transportation accounting
on the long form in Appendix E. Audit Frequency and Reporting Levels of Audit
Recommendations are new schedules included in the new edition.
FY 2014–15 Accounting Manual Revisions Summary
2014 Annual Conference 28
New Program 03 Basic Education–Dropout Reengagement opened for 2014–15.
Program has same allowable activities, objects, and duty codes as Program 02.
Under ESSHB 1418, school districts must have an approved Dropout Reengagement Program to claim FTE for funding. Current list of eligible programs is on the OSPI website: http://www.k12.wa.us/GATE/SupportingStudents/StudentRetrieval.aspx.
FY 2014–15Accounting Manual Revisions
2014 Annual Conference 29
New Activity 33 Curriculum No current method for capturing curriculum costs
(buried in Activity 27). Legislature provides curriculum funding, no
tracking of those funds. Intended to capture the cost of developing and
purchasing new curriculum. Open in all programs except 97, 98, and 99
FY 2014–15 Accounting Manual Revisions
2014 Annual Conference 30
New Activity 33 Curriculum (continued) Includes the following:◦ Textbooks.◦Electronic textbooks.◦Hands-on science kits.◦Sheet music.◦Workbooks in lieu of textbooks.
Does not include most consumable items (paper, science chemicals, etc.).
FY 2014–15 Accounting Manual Revisions
2014 Annual Conference 31
Inventory in the Capital Projects Fund (CPF) The way technology projects are implemented has
prompted a change in the CPF account codes. In 2014–15:◦GL 410 Inventory will be open in the CPF.◦GL 430 Prepaid Items will be closed in the CPF.◦GL 840 Nonspendable Fund Balance will be open in the
CPF.
FY 2014–15 Accounting Manual Revisions
2014 Annual Conference 32
We have re-visited to/from transportation accounting in Appendix E. The long form is now a two-part form:◦Part One: Calculates the per-mile rate the district should
be using.◦Part Two: A separate piece allowing for the calculation of
non-to/from trip costs.◦On Line 12: “Cost of Drivers including benefits”,
excluding the cost of health benefits is allowable. Health benefits are deemed a core cost of Program 99.
FY 2014–15 Accounting Manual Revisions
2014 Annual Conference 33
Audit Frequency
The frequency with which a school district is audited by the State Auditor’s Office depends on the district size and the level of risk associated with the district. The following table outlines SAO’s audit frequency schedule for districts.
FY 2014–15 Accounting Manual Revisions
Local Government Standard Frequency
Accountability Audits Financial Audits
School DistrictsFTE Students ≥ 8,000 Annual Annual
FTE Students < 8,000 Biennial/Triennial based on risk and user needs
Biennial/Triennial based on risk and user needs
FTE Students < 100 or no high school
Annual Audit Assessment None
2014 Annual Conference 34
Reporting Levels of Audit Recommendations SAO utilizes the following three levels of reporting issues
that arise during a financial audit:◦ Findings formally address issues in an audit report. Districts are
given the opportunity to respond to a finding, and this response, or a synopsis of it, will be published in the audit report.
◦ Management Letters communicate less significant issues of noncompliance and make recommendations for strengthening internal controls. Management letters are referenced, but are not included, in the audit report.
◦ Exit Items are less serious audit issues than a finding or management letter. These issues are informally communicated to
a district.
FY 2014–15 Accounting Manual Revisions
2014 Annual Conference 35
Michael J. (Mike) Dooley, CSBOSupervisor, School District and ESD Budgeting
(360) [email protected]
F-195 Budget Update for FY 2014-2015
2014 Annual Conference 36
F-195 Budget Update for FY 2014-2015
New items in the General Fund:◦ In all programs, except 97, 98 and 99, new Activity 33 Curriculum
was added. Objects 0, 2, 3, 4, 5, 7, 8 and 9 are allowed. With duty codes 001, 002, 003, 004, 005, 120, 121, 122, 130,
131, 132, 250, 251, 252, 310, 311, 312, 314, 320, 321, 322, 324, 330, 331, 332, 334, 400, 401, 402, 490, 491, 492, 494, 520, 521, 522, 610, 630 and 640 allowed in Object 2 certificated salaries, and
With duty codes 001, 002, 003, 004, 005, 900, 903, 940, 943, 960, 963, 970, 973, 980, 983, 990 and 993 allowed in Object 3 classified salaries.
2014 Annual Conference 37
F-195 Budget Update for FY 2014-2015
New items in the General Fund:◦New Program 03 - Basic Education – Dropout
Reengagement was added. Allowable activities are the same as in Program 02. Allowable objects are the same as in Program 02. Allowable duty codes are the same as in Program 02.
◦Under ESSHB 1418, districts must have an OSPI approved Dropout Reengagement Program to claim FTE for funding.
2014 Annual Conference 38
F-195 Budget Update for FY 2014-2015
New items in the General Fund:◦ New edit 1.155 applies to school districts that have been approved by OSPI to
claim for funding in programs under ESSHB 1418, that is Program 03:
◦ New edit 1.156 applies to school districts that have not been approved by OSPI to claim for funding in programs under ESSHB 1418, that is Program 03:
There are no expenditures in Program 03, but district has approved Dropout Reengagement Program
Amount 1 = Mask 03XXX
Applies to any district listed in edit 1.155
Valid in F-195 and F-200
There are expenditures in Program 03, but district has no approved Dropout Reengagement Program
Amount 1 = Mask 03XXX
Applies to any district other than those listed in edit 1.155
Valid in F-195 and F-200
2014 Annual Conference 39
One more (exciting) new item in the General Fund:◦ New G.L. 831 Restricted for Employee Compensated Absence is open in
both the beginning and ending fund balance sections.
New item in the Debt Service Fund:◦ On page DS4 of the EDS input option, the application will now allow
deletion of bond issue dates and amounts. Yeah!!!
New item in the Capitol Projects Fund:◦ G.L. 840 Nonspendable Fund Balance – Inventory & Prepaid Items is now
allowed in both the beginning and ending fund balance sections.
The term “Skills” Center has been changed to “Skill” Center on all screen and report displays.
F-195 Budget Update for FY 2014-2015
2014 Annual Conference 40
Budgeted Beginning Fund Balance Review:◦ OSPI will review each school district’s budgeted beginning
fund balance after all the F-196 information is received.◦ Current budgeted beginning fund balance will be recalculated
based upon the prior year actual ending fund balance from the F196.
◦ If the re-calculated budgeted ending fund balance result is negative, your school district may receive a request from OSPI to revise its budget.
◦ Your school board will have 30 days of receiving notice to submit a revised budget to OSPI.
Budgeting Reminders for FY 2014-2015
2014 Annual Conference 41
Budget Extension Reminders:◦ All of you are busy preparing your new year budgets, but
don't forget any remaining current year budget extensions.◦ August is the final month to file your F-200 budget extensions
with your ESD and OSPI.◦ Depending on when you submitted your current year F-200
for approval and when you printed your new year F-195 budget document, you may need to reprint your new year budget to allow your current year budget extension to be accurately displayed in the middle column of your new year F-195.
Budgeting Reminders for FY 2014-2015
2014 Annual Conference 42
Budget Extension Reminders:◦ Review budget monthly to determine necessity of an extension.◦ Must complete a budget extension prior to incurring expenditures
in excess of the total appropriations as required by RCW 28A.505.150.
For 1st class school districts, adopted and filed prior to incurring expenditures that exceed the appropriation in each fund.
For 2nd class school districts, adopted and approved by both the ESD and OSPI prior to incurring expenditures that exceed the appropriation in each fund.
The ESD and OSPI will adjust budget extensions that do not meet this requirement.
Budgeting Reminders for FY 2014-2015
2014 Annual Conference 43
Budget Extension Reminders:◦ WAC 392-138-110 requires that the Associated Student
Body initially review revisions to the Associated Student Body (ASB) budget. Therefore, an extension of the ASB Fund budget should occur prior to the closing of school to secure the necessary student involvement.
◦ Check your DSF appropriation for adequate spending level for your district’s debt payment schedule.
◦ Check your TVF appropriation for adequate spending level for those too-good-to-pass-up year end close-out bus deals.
Budgeting Reminders for FY 2014-2015
2014 Annual Conference 44
F-197 Cash File Questions and Answers:◦ Background
During the mid-1970s the State Legislature requested OSPI inquire into the matter of school district cash balance amounts and the factors that cause fluctuations, sometimes severe, in cash amounts throughout the school fiscal year.
Initially the data collected was as recorded by the respective county treasurers, and not the records of the district. As a result, differences were found and, for the purposes of these studies, data was revised and adjusted so as to be presented on the same comparable basis.
This brought about a need for a uniform reporting mechanism. Thus beginning in 1979 and through the early 1980s all data for cash flow analysis done by OSPI for legislative reports was taken from the cash file, what we today refer to as the F-197.
Budgeting Reminders for FY 2014-2015
2014 Annual Conference 45
F-197 Cash File Questions and Answers:◦ What is the purpose of the F-197?
Monthly data collection mechanism required of educational service districts (ESD) by OSPI and used periodically by School Apportionment and Financial Services (SAFS) to gather select school district financial data – such as net cash, investments, and local deductible revenues – on an as needed basis.
◦ How is the F-197 data used? Used by both the F-195 and F-196 financial applications for the running of edits to check
for budgetary reasonableness and accuracy in year end reporting of a school district’s financial data.
Used in the annual School District and Educational Service District Financial Reporting Summary.
Used by SAO as a supplemental tool as part of its fiscal year end reconciliation of the F-196 to the county treasurer reports.
Used by OSPI in helping to estimate the effects of the proposed delay in the June 30 th apportionment payment; used to measure a school district’s Days Cash on Hand as one of the indicators in the financial health tool.
Budgeting Reminders for FY 2014-2015
2014 Annual Conference 46
F-197 Cash File Questions and Answers:◦Does the F-197 data need to be reconciled?
All F-197 data must be entered monthly by the ESDs. Amounts entered are taken from the same source documentation supplied by the County Treasurer for each district located in its boundary.
Pursuant to RCW 28A.510.270, the County Treasurer for each county in Washington State is designated as ex officio treasurer of the districts located in his/her county.
As ex officio treasurer, the County is required to submit to each district a monthly report of the state of the finances.
This report is to be submitted not later than the seventh business day of the following month.
Budgeting Reminders for FY 2014-2015
2014 Annual Conference 47
F-197 Cash File Questions and Answers:◦ Does the F-197 data need to be reconciled?
In accordance with WAC 392-123-132, each district shall reconcile amounts reported by its County Treasurer with the district records for all funds.
This WAC, as it is written, is directing a district to reconcile amounts monthly with its county treasurers’ report, not the F-197.
Because the F-197 does not capture all of the county treasurers’ report information, it is not intended to be a replacement for the county treasurers’ monthly report; nor does it relieve a district from its monthly reconciliation of its county treasurers’ report.
The F-197 Cash File application is intended to aide in the reconciliation between a district’s financial reports, i.e. F-196 [pursuant to WAC 392-123-120], and a district’s county treasurers’ report that its county is required to submit to each of its districts monthly.
Budgeting Reminders for FY 2014-2015
2014 Annual Conference 48
F-197 Cash File Questions and Answers: OSPI does encourage monthly reconciliation of school district
accounts with a simulation of closing using the fund balance budget status report (Form F-198) [pursuant to WAC 392-123-115].
The F-197 is made available to school districts through the Education Data System (EDS) portal for their recommended comparison to their county treasurers’ monthly report for accuracy and for the reporting of all F-197 discrepancies to their respective ESD for correction.
OSPI’s F-197 in EDS can be thought of as an on-line bank statement that displays a school district’s checking account balance so it will know its bottom line.
Budgeting Reminders for FY 2014-2015
2014 Annual Conference 49
FY 2013–14 F-196 UpdateRamona Garner
Supervisor, School District/ESD Financial Reporting(360) 725-6304
Email: [email protected]
2014 Annual Conference 50
Notice is hereby given to school districts and ESDs, in accordance with WAC 392-117-035, that failure to adhere to the due dates below could result in a delay of apportionment payments. The final date for filing or forwarding will be considered as having been met if the postmark or other evidence indicates shipment prior to the due date or the next workday if the due date falls on a weekend.Final Action Date Action
October 27 School Districts - Final date for submission of completed F-196 data from the school district to the local ESD. The data will be submitted electronically and/or on an F-196 manual form. Districts not able to submit by the October 27 due date may request a waiver by email or written notice to the ESD.
November 3 ESDs - Final date for the ESD to review and forward the certification page back to the school district for signature.
November 10 School Districts - The signed certification page is due from the school district to the ESD.
November 17 ESDs - Final date the signed certification page by the ESD is due at OSPI, School Financial Services.
FY 2013–14 F-196 Update
2014 Annual Conference 51
Please make a note of these dates; it is not too early to start gathering the needed data and balancing system items for year-end closing. Starting now on this process will make meeting the listed deadline dates easier for you.
FY 2013–14 F-196 Update
2014 Annual Conference 52
In accordance with WAC 392-117-035, districts and ESDs that fail to adhere to the due dates could have a delay of apportionment payments. The final date for filing or forwarding will be considered as having been met if the postmark or other evidence indicates shipment prior to the due date or the next workday if the due date falls on a weekend.
FY 2013–14 F-196 Update
2014 Annual Conference 53
The F-196 Process is completed in the EDS platform.
https://eds.ospi.k12.wa.us/login.aspx
If you have not accessed the EDS platform, contact your ESD for assistance.
FY 2013–14 F-196 Update
2014 Annual Conference 54
The SAFS applications have been developed to be viewed with Microsoft’s Internet Explorer 6.0 or higher. Results may be unpredictable using other browsers.
To help ensure your browser refreshes the application pages correctly, set the browsing option as follows in Internet Explorer: go to Tools -> Internet Options -> General Tab -> Browsing History -> Settings. Under the “Check for newer versions of stored pages” heading, select ‘Every time I visit the website.’
FY 2013–14 F-196 Update
2014 Annual Conference 55
Bulletin No. 006-13 dated March 21, 2013, Addendum to Bulletin No. 006-13 dated June 21, 2013, and the forthcoming Second Addendum to Bulletin No. 006-13 describe the changes in more depth.
FY 2013–14 F-196 Update
2014 Annual Conference 56
Added:
Program 22 Special Education—Infants and Toddlers—State
Program 25 Special Education—Infants and Toddlers—Federal
Revenue codes: 2122 Special Education—Infants and Toddlers—Tuition and Fees
4122 Special Education—Infants and Toddlers—State
4322 Special Education—Infants and Toddlers—State
6122 Special Education—Infants and Toddlers—Medicaid Reimbursements
6125 Special Education—Infants and Toddlers—Federal
6222 Special Education—Infants and Toddlers—Medicaid Reimbursements
6225 Special Education—Infants and Toddlers—Federal
6322 Special Education—Infants and Toddlers—Medicaid Reimbursements
6325 Special Education—Infants and Toddlers—Federal
7122 Special Education—Infants and Toddlers
8522 Educational Service Districts—Special Education—Infants and Toddlers
Attachment B of the Addendum to Bulletin No. 006-13 datedJune 21, 2013 gives detailed information on the revenue codes listed above.
FY 2013–14 F-196 Update
2014 Annual Conference 57
Opened/Deleted/Changed the following:
General Ledger Accounts:• Opened GL 250 in the GF, CPF, and TVF for Local program proceeds• Opened GL 819 Restricted for Fund Purposes in the TVF• Opened GL 830 Restricted for Debt Service in the DSF• Changed the title of GL 606 to Anticipation Notes Payable• Changed GL 820 to be Assigned to Encumbrances• Changed GL 862 to be Committed from Levy Proceeds• Added GL 660—Unearned Revenue in GF, CPF, DSF, ASB, TVF, and Permanent
Fund• Added GL 831—Restricted for Compensated Absences in GF• Added GL 856—Held in Trust for Pensions and Other Employee Benefits in the
PPTF• Added GL 857—Held in Trust for Private Purposes in the PPTF
FY 2013–14 F-196 Update
2014 Annual Conference 58
Opened the following revenue codes in the TVF:◦ 4100 Special Purpose—Unassigned◦ 4300 Other State Agencies—Unassigned◦ 5200 General Purpose Direct Federal Grants—Unassigned◦ 6100 Special Purpose—OSPI Unassigned◦ 6200 Direct Special Purpose Grants◦ 6300 Federal Grants Through Other Entities—Unassigned
FY 2013–14 F-196 Update
2014 Annual Conference 59
Opened/Added/Deleted/Changed the following:◦ Added Revenue 8521 Educational Service Districts—
Special Education in GF◦Opened Activity 28 Extracurricular in Programs 52 (Other
Title Grants Under ESEA—Federal) and 69 (Compensatory—Other), with Objects 0, 2, 3, 4, 5, 7, 8, and 9 open
◦Opened Object 8 Travel in Activities 62, 63, and 64 in Program 45 (Skill Center—Basic—State)
◦Deleted Revenue 4166 Student Achievement◦Deleted Program 66 Student Achievement—State
FY 2013–14 F-196 Update
2014 Annual Conference 60
Opened/Added/Deleted/Changed the following:◦ Title changes to the Fiduciary fund to be in accordance with
GASB 63.◦ Districts that choose to submit F-196 revision for 2012–13 to
make the title change adjustments to be in accordance with GAAP need to do so through the normal F-196 revision process. Please request a WORD document for the revision by sending an email to me at:
[email protected] will then send you the document with instructions. Please make sure you copy your ESD on all requests. New Certification Pages do not need to be re-signed/sent if the only revision item is the title changes to the Fiduciary fund. If any other changes are made to any other report or dollar amounts are changed, then districts will need to re-sign/submit a new Certification Page.
FY 2013–14 F-196 Update
2014 Annual Conference 61
FY 2013–14 F-196 Update OSPI website link:
◦ http://www.k12.wa.us
2014 Annual Conference 62
FY 2013–14 F-196 UpdateThere are numerous tools on the SAFS’s website to assist Districts. District’s are encouraged to access these templates.
2014 Annual Conference 63
There are no changes to the Certification Page. Districts are required to hand enter the number of days school was operated.◦Districts that have a waiver from Washington State Board of
Education will enter the number of days school was operated. Include a copy of the waiver letter with the signed Certification Page.
Verify that the Ending Total Fund Balance on the Certification Page is the same as the Total Fund Balance on the Balance Sheet and the Ending Total
Fund Balance on the Statement of Revenues, Expenditures, and
Changes in Fund Balance.
FY 2013–14 F-196 Update
2014 Annual Conference 64
Within the F-196 system, your beginning fund balance in any year MUST match the ending fund balance for the prior year.
If you made a change to last year’s F-196 that resulted in a change to fund balance, you MUST enter it as a prior period correction.
FY 2013–14 F-196 Update
2014 Annual Conference 65
FY 2013–14 F-196 Update
2014 Annual Conference 66
There are no changes to the manually entered Indirect Expenditures. The district should enter audit costs, legal costs, public relations expenditures, termination leave for federally supported staff, information system expenditures, pupil management and safety costs, and space and occupancy costs, if a cost plan has been established.
Remember that legal costs are very restrictive. Only enter costs associated with the interpretation of laws, regulations, or board policy.
Also remember that no student record costs can be entered for information systems. Only enter costs
associated with fiscal systems (i.e., WSIPC fees, districtwide IT support).
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There is help for determining what goes into the Indirect Rates. Information regarding Restricted and Unrestricted Indirect Rates can be found on the OSPI website at:◦ http://www.k12.wa.us/safs/FinancialResources.asp◦ Indirect Cost Rates–Federal Indirect Rate Frequently
Asked Questions
◦ http://www.k12.wa.us/safs/INS/ACC/1314/am.asp◦ Chapter 10 of the Accounting Manual – Grants
Management
◦ http://www.whitehouse.gov/omb/circulars_a087_2004#c◦ OMB Circular A-87
FY 2013–14 F-196 Update
2014 Annual Conference 68
The 5 year Restricted Indirect Cost Rates have been updated and posted.
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As stated in the Addendum to Bulletin No. 081-11, dated January 12, 2012, Attachment B, districts that coded staff under duty code suffix “4,” for the purposes of recording the costs of innovative activities included in supplemental contracts, will submit a brief description of these innovative activities with the district’s F-196.
On The Data Requirements for Supplemental Reports, item D requires an entry. Although there has not been any “cost-of-living” increases for several years, under RCW 28A.400.205 districts must certify either “yes” or “no” that it has spent funds provided for cost-of-living increases on salaries and salary-related benefits.
Districts that receive the Medicaid reimbursement should use Revenue code 6321 because the Medicaid reimbursement is coming from DSHS, not OSPI.
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There are no changes to the manually entered distorting items such as election expenses, flow-through grants, alterations/renovations, and fines/penalties. This data is used in the Federal Restricted and Unrestricted Indirect Rate.
The F-196 contains a preliminary MOE test for Special Ed. This is a basic version of the actual test. Districts need only pass one of the four tests to pass MOE:◦ State and Local, in aggregate.◦ State and Local, per pupil.◦ Local, in aggregate.◦ Local, per pupil.
Districts should note that passing the preliminary test does not necessarily mean that a district has passed Maintenance of Effort for Special Education. Final tests are done following the F-196 process.
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After your ESD approves your F-196, and you feel that your financial statements are correct, you can proceed with your year-end close. Any review of the district’s F-196 by OSPI does not affect the district’s year-end close process.
If your district requires that an F-196 revision be made, please contact Ramona Garner via email at: ([email protected]) to request an MS Word document. Upon receipt of your email, I will send the district’s F-196 and instructions for making revisions. Don’t forget to cc your ESD when making a revision request.
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Questions and comments are always welcome and appreciated. Whenever possible, emailing your question is beneficial in assuring that OSPI understands the question and allows a “paper trail” for OSPI and the district if the question should arise again.
Thank you!
FY 2013–14 F-196 Update