Ralph Fortunato & Paul Stone May 10 &11, 2018

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1 Ralph Fortunato & Paul Stone May 10 &11, 2018 The School Financial Services Update by Office of Superintendent of Public Instruction is licensed under a Creative Commons Attribution 4.0 International License Annual Conference, Tacoma WA 1

2 Ralph Fortunato Supervisor, School District/ESD Financial Reporting Annual Conference, Tacoma WA 2

3 The F-196 Process is completed in the EDS platform. If you have not accessed the EDS platform, contact your ESD for assistance Annual Conference, Tacoma WA 3

4 The SAFS applications have been developed to be viewed with Microsoft s Internet Explorer 9.0 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 Annual Conference, Tacoma WA 4

5 Notice is hereby given to school districts and ESDs, in accordance with WAC , that failure to adhere to the due dates 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 By Action October 25 S.D. 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 25 due date may request a waiver by or written notice to the ESD. November 1 ESD Final date for the ESD to review and forward the certification page back to the school district for signature. November 8 S.D. The signed certification page is due from the school district to the ESD. November 15 ESD Final date the signed certification page by the ESD is due at OSPI, School Financial Services Annual Conference, Tacoma WA 5

6 In accordance with WAC , 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 Annual Conference, Tacoma WA 6

7 Please make a note of these dates; it is not too early to start gathering the needed data and balancing system items for yearend closing. Starting now on this process will make meeting the listed deadline dates easier for you Annual Conference, Tacoma WA 7

8 The School District Accounting Manual Bulletin and any Addendums describe changes in more depth Annual Conference, Tacoma WA 8

9 Districts will enter the amount of Program 55-Learning Assistance Program High Poverty expenditures. The specifics and format are still in development. This will be a district wide number, not by school (at least for now). This is for carryover and recovery calculations Annual Conference, Tacoma WA 9

Go to the OSPI Website http://www. k12.wa.

10 Go to the OSPI Website k12.wa.us Finance & igrants 2018 Annual Conference, Tacoma WA 10

11 From the Finance & igrants Home Page, Go to SAFS 2018 Annual Conference, Tacoma WA 11

12 SAFS Instructions Text Alerts Tools/Forms The EDS Apps 2018 Annual Conference, Tacoma WA 12

13 SAFS Instructions 2018 Annual Conference, Tacoma WA 13

14 SAFS Tools/Forms 2018 Annual Conference, Tacoma WA 14

15 Notes to the Financial Statements 2018 Annual Conference, Tacoma WA 15

16 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. If your district exceeds their budget appropriation, a letter of explanation needs to be sent with your Certification Page. This letter must be an original, on district letterhead, and signed by the Superintendent or authorized official Annual Conference, Tacoma WA 16

17 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. Review your revenues and expenditures compared to the entries on the Resource to Program Expenditure Report. Verify that state, federal and other revenues are properly recorded Annual Conference, Tacoma WA 17

18 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 Annual Conference, Tacoma WA 18

19 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. Distorting items must be significant expenditures that distort normal annual expenditures. Districts will define what is a significant expenditure Flow through grants could be an item Election expenses 2018 Annual Conference, Tacoma WA 19

20 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 student record costs cannot be entered for information systems. Only enter costs associated with fiscal systems (i.e., WSIPC fees, districtwide IT support) Annual Conference, Tacoma WA 20

21 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: Indirect Cost Rates Federal Indirect Rate Frequently Asked Questions Chapter 10 of the Accounting Manual Grant Management v5 Part 200 The Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards 2018 Annual Conference, Tacoma WA 21

22 The 5 year Restricted Indirect Cost Rates and FAQ s are updated and posted Annual Conference, Tacoma WA 22

23 The Data Requirements for Supplemental Reports, item D requires an entry. Under RCW 28A 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 Medicaid reimbursement should use Revenue code 6321 because the Medicaid reimbursement is coming from DSHS, not OSPI. Districts that receive Transportation Vehicle Fund revenue for the acquisition of student vehicle transportation should use revenue code Annual Conference, Tacoma WA 23

24 The F-196 contains a preliminary Maintenance of Effort (MOE) test for Special Education. IDEA permits LEAs to meet the compliance standard using any of four methods by calculating: State and Local, in aggregate State and Local, per pupil Local, in aggregate Local, per pupil Please Note: Passing the preliminary F-196 tests does not necessarily mean that an LEA has passed MOE for the current year Annual Conference, Tacoma WA 24

25 The MOE test in the F-196 is not updated. It compares current year expenditures with the immediate prior year expenditures. OSPI is evaluating whether the F-196 MOE test can be redesigned. A new testing methodology was implemented. The subsequent years test; 34 CFR The new requirements test current year with the last year in which the LEA passed using the same methodology. Final tests for compliance are performed at OSPI following submission of the LEA s F-196. LEAs are notified by OSPI; should there be a potential maintenance of effort failure Annual Conference, Tacoma WA 25

26 After your ESD approves your F-196, and you feel that your financial statements are correct, you can proceed with your yearend 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 Ralph Fortunato via at: ralph.fortunato@k12.wa.us to request an MS Word document. Upon receipt of your , 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 Annual Conference, Tacoma WA 26

27 Questions and comments are always welcome and appreciated. Whenever possible, ing 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 Annual Conference, Tacoma WA 27

28 Local Sub-Fund Law requires that districts use a local fund sub-fund F-196 will not incorporate the local sub-fund in financial reports Expanded Resource to Program Expenditure Report (Part IV) OSPI will not collect data in the F-196 and SAO will audit the implementation of the Local Sub-Fund Use as a practice year Activity 34-State Funded Professional Learning Day NCES Expenditure Codes Reporting in the F-196 will start in Familiarize yourself with the codes Chart of Accounts or Cross Walk Use as a practice year 2018 Annual Conference, Tacoma WA 28

29 Information on EHB 2242 Can be found on SAFS webpage Info on NCES Codes and Local sub-fund 2018 Annual Conference, Tacoma WA 29

30 There will be substantial reporting changes coming in the future years. Local Sub-Fund Reporting NCES Expenditure Code Reporting Revenue to Expenditure Reporting Building (school) Level Reporting ESSA reporting requirements Stay tuned-look for bulletins, trainings etc. The changes are coming, don t be caught unprepared Annual Conference, Tacoma WA 30

31 Thank You Ralph Fortunato Supervisor, School District/ESD Financial Reporting Annual Conference, Tacoma WA 31

32 Paul Stone Supervisor, School District/ESD Accounting Annual Conference, Tacoma WA 32

33 Addendums to the Accounting Manual (SDAM) Bulletin Number Chapter 2 Four-Year Budget Plans Chapter 3 Indirect Rate Procedures Chapters 8 & 10 SEFA Guidance Chapter 10 Title IA Supplement Not Supplant (SNS) Appendix E To and From Transportation Guidance Other Accounting Changes 2018 Annual Conference, Tacoma WA 33

Chapter 2 Four-Year Budget Plans Near Page 2-2: Guidance is added to advise school districts that the annual budget development process shall include the development

34 Chapter 2 Four-Year Budget Plans Near Page 2-2: Guidance is added to advise school districts that the annual budget development process shall include the development or update of a four-year budget plan. More guidance on this requirement will be available on the EHB 2242 Accounting Changes Website Annual Conference, Tacoma WA 34

35 Chapter 3 Indirect Rate Procedures Near Page 3-57: The rules and procedures to calculate a school district s Indirect Rates are updated to comply with Uniform Grant Guidance. The Department of Education (ED) audited the state s plan and recommended various changes. The entire chapter-section is updated Annual Conference, Tacoma WA 35

36 Chapter 3 Indirect Rate Procedures Federal Indirect Rate Cost Proposal Document which outlines the district s indirect rates Retain at the district level Organizational Chart showing the structure of the district. Retain at the district level 2018 Annual Conference, Tacoma WA 36

37 Chapter 3 Indirect Rate Procedures Certificate of Indirect Costs Assurance document signed by an administrator Certifying rates submitted in the F-196 are true and correct. Retain at the district level Annual Conference, Tacoma WA 37

38 Chapters 8 and 10 Schedule of Expenditures of Federal Awards (SEFA) Guidance Near Page 8-10 and Page 10-15: A SEFA is required to be prepared by all districts. Minor narrative edits are made where the SEFA is referenced. SAO must opine an opinion regarding the SEFA Annual Conference, Tacoma WA 38

Find the SEFA Template on OSPI s School Apportionment & Financial Services webpage: Instructions / ABFR Handbook / 2017 2018 http://www.k12.wa.

39 Find the SEFA Template on OSPI s School Apportionment & Financial Services webpage: Instructions / ABFR Handbook / Chapter XI: Schedule of Expenditures of Federal Awards (SEFA) Look for an updated SEFA schedule around year-end 2018 Annual Conference, Tacoma WA 39

40 Appendix E To and From Transportation Beginning at Page E-1: The guidance in this section has been modified. The most significant changes are in the section describing the Transportation Long-Form. During the Audit Cycle, SAO reviewed school district use of the Transportation Long-Form 2018 Annual Conference, Tacoma WA 40

41 Appendix E To and From Transportation More information presented during the WASBO Workshop: Long-Form and Transportation Funding on Thursday afternoon Annual Conference, Tacoma WA 41

42 GASBS 75 Accounting and Financial Reporting for OPEB School Districts preparing OCBOA financial statements will provide OPEB Note Disclosure only. School Districts preparing CAFRs must fully implement GASBS 75. OPEB plans are not administered through a Trust OPEB plans are district-specific. Migration to SEBB may change reporting requirements Annual Conference, Tacoma WA 42

43 GASBS 75 Accounting and Financial Reporting for OPEB OCBOA Note Disclosure to include Plan Description, Participants, and other elements. Any Note Template produced by OSPI will include multiple fill in the blanks for district-specific plan information. Information must be obtained from the Plans Annual Conference, Tacoma WA 43

44 Thank You Paul Stone Supervisor, School District/ESD Accounting Annual Conference, Tacoma WA 44

Ramona Garner Supervisor, School District/ESD Financial Reporting

Ramona Garner Supervisor, School District/ESD Financial Reporting 360-725-6304 ramona.garner@k12.wa.us With Denise Wolff, Director, School Finance Capital Region ESD 113 dwolff@esd113.org The F-196 is