UFARS 101 Introduction

Transcription

1 UFARS 101 Introduction Deb Meier Education Finance Specialist February 9, 2018 Agenda Uniform Accounting and Financial Reporting System (UFARS) Overview MDE Website Fiscal Year 2018 UFARS Manual under MDE > Districts, Schools and Educators > School Finance > Financial Management > UFARS UFARS Coding Structure Summary Dimensions Revenue Coding Dimensions Balance Sheet Dimensions (Assets, Liabilities and Fund Balance Coding) 2 1

2 UFARS Overview? UFARS UNIFORM FINANCIAL ACCOUNTING and REPORTING STANDARDS Accounting and UFARS Overview ACCOUNTING, BUDGETING, AND REPORTING REQUIREMENT (Minn. Stat. 12B.77) Law 1976 Subdivision 1. Uniform financial accounting and reporting standards. Each Minnesota school district must adopt the uniform financial accounting and reporting standards for Minnesota school districts provided for in guidelines adopted by the department. All Minnesota school reporting entities are required by law to prepare financial reports and annual budgets. These financial reports include the detailed tracking of revenues and expenditures within UFARS fund classifications to meet legislative requirements and provide financial accountability for public fund allocations. 4 2

3 UFARS Overview UFARS MANUAL Fiscal Year 2018 Edition Uniform Financial Accounting and Reporting Standards 5 UFARS Overview UFARS 101 introduction is not a replacement for UFARS 101 all day training. This is simply an overview that should help you determine who at your district or charter school needs the all day training. Future UFARS 101 All Day Training: UFARS 101 training will introduce Uniform Financial Accounting and Reporting Standards (UFARS) and review: A) Chart of Accounts; B) UFARS System Uses; C) Dimension Descriptions; D) Legislative Requirements, and review basic accounting concepts and financial reporting for Minnesota schools. The training will also include expenditures/revenues exercises and website navigation. Registration information for future UFARS 101 workshops are posted on the MDE calendar webpage or by following About MDE > Calendar. Scheduled dates for future registrations are: February 22, 2018 April 19, 2018 July 19, 2018 August 22,

4 FY 2018 UFARS Data Submission Deadlines FY 2018 Preliminary Unaudited UFARS (September 15, 2018) FY 2018 Final Audited UFARS (November 0, 2018) FY 2018 Fiscal Compliance Table (November 0, 2018) FY 2018 Audit Report (December 1, 2018) 7 UFARS Overview MDE > Districts, Schools and Educators > School Finance > Financial Management > UFARS 8 4

5 UFARS Overview EXPENDITURES 9 UFARS CODING STRUCTURE-EXPENDITURES 6 Dimensions 1 Fund 2 Organization Program 4 Finance 5 Object 6 Course FD 2 ORG PRG FIN OBJ CRS 17 - DIGITS 10 5

6 UFARS Manual Overview Chapter Page 5 11 Fund Dimension Chapter 1 (Five Fund Categories) Operating Funds Non-Operating Funds Fund 01 General Fund Fund 06 Building Construction Fund Fund 02 Food Service Fund Fund 07 Debt Service Fund Fund 04 Community Service Fund Fund 47 OPEB Debt Service Fund Fiduciary Funds Fund 08 Trust Fund Fund 09 Agency Fund Fund 45 OPEB Irrevocable Trust Fund Proprietary Funds Fund 20 Internal Service Fund Fund 25 OPEB Internal Service Fund Account Groups Fund 98 General Fixed Assets Group Fund 99 General Long-Term Debt Group 12 6

7 Fund Dimension GENERAL FUND 01 1 General Fund 01 General Fund (01) Activities Administration District Support Services Other Programs Some Sites and Buildings Activities Pupil Support Services Education Elementary, Secondary, Vocational, Special Education Instruction Instructional Support Services The General Fund is used to account for all revenues & expenditures not accounted for elsewhere. 14 7

8 Organization/Site Dimension (UFARS Manual Chapter 2) The purpose of the organization/site dimension is to identifies expenditures by a specific budgeted learning site or district-wide. A budgeted learning site is an organizational unit where students attend: Established for a specific purpose Registered with the Department as an official learning site within a district 15 In accordance with instructions provided for MARSS and STAR, expenditures that occur at more than three sites may be designated as District-Wide (Organization Code 005). District-Wide or Not Otherwise Identified by Budgeted Learning Site Used for activities that cannot be related to an individual budgeted learning site. In general, these program codes should be coded to Organization Code 005 (District-wide): Board of Education (010) Office of Superintendent (020) Instructional Administration (00) District Support Services (100 series) Community Education and Services (500 series) Fiscal and Other Fixed Cost Programs (900 series) 16 8

9 Organization/Site Dimension Typical budgeted learning sites are: Elementary, middle or secondary schools (whether or not it is in a separate building) or A budgeted learning site that is located in several buildings and is identified in the MARSS and STAR systems. Each reporting entity must use the same numbers in the UFARS reporting system as they use in the Minnesota Automated Reporting Student System (MARSS) and the Staff Automated Reporting System (STAR). 17 Budgeted Learning Sites: , , , 999 These codes should be used for budgeted learning sites. This must include, but not be limited to, expenditures for Basic Skills Education, expenditures pursuant to a site-based management agreement, and area learning center expenditures. Following program codes should use budgeted learning sites : School Administration (050) Elementary and Secondary Regular Instruction (200 series) Career and Technical Education Instruction (00 series) Following program codes should use District-Wide (005) or , budgeted learning sites: Special Education Instruction (400 series) Instructional Support Services (600 series) Pupil Support Services (700 series) Sites and Buildings (800 series) 18 9

10 Home School Sites (799) Record expenditures made by all home school sites. This organization/site code cannot be used as a budgeted learning site number. Tuition Billing Sites (998) Individual tuition payments for students served outside of the district

11 21 MDE-ORG Districts, Charter Schools and organizations working with the Minnesota Department of Education need to update and maintain current data for their district and school information in a timely manner or within 90 days of an organizational change. The updates are made in the District and School Site Verification System and are displayed in the MDE Organization Reference Glossary (MDE-ORG). To view go to the MDE website: MDE > About MDE > Schools and Organizations (MDE-ORG). Changes include, but are not limited to, the following: administrators, district and site level contacts, address information and organizational changes in operational status, grade level, school classification or district/school or organization name changes. The appointed Site Verification Coordinator at the organization has access to the secure District and School Site Verification System and can update contact and address information or request any changes required by the organizational changes as they occur within the school year. MDE staff use MDE-ORG for many purposes, so please ensure this is up to date

12 Program Dimension (UFARS Manual Chapter ) Encompasses all aspects of school district operations, including instructional, administrative and various support activities. Program Code 000 is not a valid code for expenditures. 2 Program Dimension has a series of 10 categories: 24 12

13 Finance Dimension (UFARS Manual Chapter 4) Used to record revenues and expenditures that relate to an activity funded by a categorical aid or levy* revenue limited by: Minnesota Statutes Federal Regulations. Must be used in all cases for revenues and expenditures which relate to a restricted/reserved fund balance. * Categorical Aids or levy Categorical revenue formulas are generally used to meet costs that vary significantly between district (i.e., special education) or promote certain types of programs (i.e. career and technical aid, adult basic education aid). Safe Schools is a categorical levy. 25 Finance Dimension has 10 Categories (FY 2017): 1) District Wide (000) 2) State Supported Programs (00 series) ) ARRA Targeted and Federal Formula Grants (400 & 600 series)¹ 4) Federal Aid Received Directly from Federal Sources (500 series) 5) Child Nutrition ( ) 6) Transportation (711-79) 7) Special Education ( ) 8) State Placement ( ) 9) Levy Supported Programs ( ) 10) Federal Competitive Grants (800 & 900 series excluding 80 & 85) Career & Technical Education & School-To-Work (80 & 85) 26 1

14 Object Dimension (UFARS Manual Chapter 5) Identifies the service or commodity obtained as the result of an expenditure. This is the most detailed dimension 000 can not be used in the expenditure coding The object dimension has 8 major categories Description Object Description Object Salaries & Wages 100 Series Capital Expenditures 500 Series Employee Benefits 200 Series Debt Service 700 Series Purchased Services 00 Series Other Expenditures 800 Series Supplies & Materials 400 Series Other Financing Uses 900 Series 27 Course Dimension (UFARS Manual Chapter 7) Limited number of course codes assigned to a specific purpose Course dimensions assigned for designated years ( ) Course dimensions assigned to track federal grants (000, ) Birth to Two SPED Maintenance of Effort (MOE) (620) AYP Schools Set Aside Codes (621-69) Staff Development SPED & Federal Programs Title I set-asides ( ) School Improvement Implementation Set-Aside ( ) Alternative Facilities Projects ( , , ) Student Activity (900 Series) 28 14

15 State Fiscal Year 1/18/2018 Course Code Matrix State Fiscal Year and Federal Award Year Federal Award Year Course Code 012 Course Code 011 Course Code Course Code 012 Course Code 011 Course Code Course Code 012 Course Code 011 Course Code Course Dimension (UFARS Manual Chapter 7) Mandatory Set Asides Title I Set-aside course codes in UFARS FY 2016 and FY 2017 These course codes should only be used with Finance Code 401, with the exception of 640, 641 and 642 which may be used in Federal Special Education reporting. Current Prior 2nd Prior Year Year Year Course Code (000) (011) (012) Highly Qualified LEA Level Activities Neglected Homeless Parent Involvement AYP School Choice / SES AYP Professional Development School Improvement Implementation

16 Chapter 10 Grid - 1 Chapter 10 Grid - Permitted Code Combinations (UFARS Manual Chapter 10) Expenditure codes are divided into two basic categories: 1. Unrestricted expenditures that use unreserved revenues (Finance Code = 000). 1. Restricted expenditures that use reserved or restricted revenues (Finance Code 000). 2 16

17 Chapter 10 Unrestricted Grid - Chapter 10 Grid - Restricted Finance Grid Used for expenditures that require a finance code because they are funded by federal grants, state aid, or local levy which use is restricted by federal regulations or state statutes. The restricted grid layout is: Fin Description Funds Organization Program Object The finance dimension is the key dimension of this grid. Once a requirement for a finance dimension is determined and the finance number has been located on the grid, the remaining allowable expenditure code dimensions can be determined 4 17

18 Chapter 10 Restricted Grid - 5 Revenues REVENUES 6 18

19 UFARS CODING STRUCTURE-REVENUES 6 Dimensions 1 Fund 2 Organization Program 4 Finance 5 Source 6 Course FD 2 ORG PRG FIN SRC CRS 17 - DIGITS 7 UFARS Manual Overview Chapter Page

20 Revenues Source Dimension Chapter 6, Page 1 Source Code Dimension series of seven categories: 9 Revenue Coding FD ORG PRG FIN SRC CRS Source Dimension (UFARS Manual Chapter 6) Federal Revenues Received through MDE and other State Agencies (400 Series) Federal Revenues Received Directly from Federal Sources (500 Series) Other Revenues (600 Series) Local Sales, Insurance Recovery and Judgment Sale of Bonds and Loans Incoming Transfers from Other Funds 40 20

21 Revenue Coding FD ORG PRG FIN SRC CRS Finance Dimension Used to record revenues as well as expenditures that relate to an activity funded with a categorical aid or levy, or relates to a reserved fund balance. Each finance code explanation in the manual states whether or not the finance code needs to be used for UFARS revenue reporting. If a program is entirely state funded, federally funded, or relates to a restricted/reserved fund balance, use the appropriate finance code for both revenues and expenditures. If state aid payments for a program are combined with state aid for other purposes, and/or revenue for a program consists in whole or in part from property tax levy revenue, the finance dimension need not be used to identify these revenues (only use for expenditures). If there is an associated reserve fund balance, the finance code needs to be used for both expenditures and revenues. 41 Balance Sheet Accounts Balance Sheet Accounts 42 21

22 UFARS CODING STRUCTURE-Balance Sheet Accounts Dimensions 1 Fund FD 2 2 Balance (GNL) BAL Optional Local Use XXX 2 or 7 or (8) - DIGITS 4 Asset, Liability and Fund Balance Coding FD BAL XXX FUND DIMENSION Page 1 of Fund Dimension Summary Operating Funds Non-Operating Funds Fund 01 General Fund Fund 02 Food Service Fund Fund 04 Community Service Fund Fund 06 Building Construction Fund Fund 07 Debt Service Fund Fund 47 OPEB Debt Fund Fiduciary Funds Fund 08 Trust Fund Fund 09 Agency Fund Proprietary Funds Fund 20 Internal Service Fund Fund 25 OPEB Internal Service Fund Fund 45 OPEB Irrevocable Trust Fund 44 22

23 Balance Sheet Accounts FD BAL XXX A balance sheet is a financial statement that reports the assets, liabilities, and fund balances of a district. Asset Accounts Categories Fund Balance Sheet Acct Code Current Asset Accounts and General Fixed Asset Account Group General Long-Term Debt Account Group Fund 20 and Account Group 98 Fund 20 and Account Group , Balance Sheet Accounts FD BAL XXX A balance sheet is a financial statement that reports the assets, liabilities, and fund balances of a district. Liability Accounts Categories Fund Balance Sheet Acct Code Current Liability Accounts and Long-Term Debt Liabilities Fund 20 and Account Group

24 Balance Sheet Accounts FD BAL XXX A balance sheet is a financial statement that reports the assets, liabilities, and fund balances of a district. Categories Balance Sheet Account Code Nonspendable 460 Restricted/Reserved , , 41-45, 459, Restricted 464 Committed 418, 461 Assigned 462 Unassigned 422, 46 Investments in General Fixed Assets (Account Group 98 only) UFARS Overview Summary UFARS Overview Summary 48 24

25 UFARS Overview UFARS MANUAL Fiscal Year 2018 Edition Uniform Financial Accounting and Reporting Standards 49 UFARS Overview MDE > Districts, Schools and Educators > School Finance > Financial Management > UFARS 50 25

26 UFARS CODING STRUCTURE-EXPENDITURES 6 Dimensions 1 Fund 2 Organization Program 4 Finance 5 Object 6 Course FD 2 ORG PRG FIN OBJ CRS 17 - DIGITS 51 UFARS CODING STRUCTURE-REVENUES 6 Dimensions 1 Fund 2 Organization Program 4 Finance 5 Source 6 Course FD 2 ORG PRG FIN SRC CRS 17 - DIGITS 52 26

27 UFARS CODING STRUCTURE-Balance Sheet Accounts Dimensions 1 Fund FD 2 2 Balance (GNL) BAL Optional Local Use XXX 2 or 7 or (8) - DIGITS 5 Accounting and UFARS Overview 6 Dimensions 17 Digits Dimensions 7 (or 8) Digits Income Statement Expenditure & Revenue Codes XX-XXX-XXX-XXX-XXX-XXX Balance Sheet Asset, Liability and Fund Balance Codes XX-XXX-XXX-XXX-XXX-XXX Expenditure Code Structure Revenue Code Structure FD ORG PRG FIN SRC CRS Asset, Liability & Fund Balance FD BAL XX N/A N/A N/A 54 27

28 UFARS Overview Summary Questions? 55 MDE Financial Management Contacts For UFARS Accounting, Manual and Chapter 10 Grid questions, contact the UFARS Helpdesk: Contact the MDE IT-Helpdesk for technical questions or problems with the MDE website: 56 28

29 MDE Financial Management Contacts Jenny Charles Deb Meier Charter School Lease Aid, Federal Reporting & UFARS Accounting, Manual & Training, Financial Mgmt Training, MOE, Financial Data Requests Education Finance Specialist Education Finance Specialist Division of School Finance Division of School Finance or or Melody Santana-Marty Consolidated Financial and Profile Reports, CPA Financial Audits, MDE Single Audit, Indirect Cost Reporting Education Finance Specialist Division of School Finance or To be determined Financial Mgmt Training, Credit Enhancement, Statutory Operating Debt (SOD) Education Finance Specialist Division of School Finance To be determined Mary Weigel Financial Management/Reporting Supervisor Division of School Finance or MDE Special Education Contacts Paul Ferrin Special Education, Data & Analysis Supervisor Beth Tomlinson Electronic Data & Reporting Systems (EDRS) Federal Allocation/Application Approval/MOE Michelle Jones Tuition Billing Adjustment Calculations Michael Brooks State Aid Calculations/MOE/SERVS Jill Bemis State Aid/Vehicle Purchases/Special Pupils Dave Lobejko Data Analytics Specialist Michelle Carey ListServ Distribution/Non-Public Fall Report Send all inquiries to 58 29

30 MDE MARSS Student Contacts Kelly Garvey Jeanne Krile Student Transportation PSEO, ADM/EDRS Reporting or or Kelly Wosika Marilyn Loehr Student Accounting MARSS Coordinator or or Sharon Peck Supervisor, Student Accounting or MDE Other Contacts SERVS Financial How to gain access and utilize SERVS Financial Error messages and malfunctions when using SERVS MARSS Student Reporting Minnesota Automated Student Reporting System (MARSS) contact: Title Programs Title Programs Special Education Special Education Funds 60 0

31 Thank you! Deb Meier /18/