F-197 Balancing Overview

Transcription

1 Business Manager Toolkit F-197 Balancing Overview By Denise Wolff and Cindy Adkins Capital Region ESD 113

2 What is the F-197? A report generated from the Monthly County Treasurer s Report displaying Cash, Warrants Outstanding, Investment Balance and related activity for each fund in the district The data is entered into OSPI s EDS system by the local Educational Service District from the Monthly County Treasurer s Report. Schedule A provides detail of Cash increases other than district direct deposit to the treasurer. Apportionment detail is contained on the 1197 report of the Monthly Apportionment reports from OSPI 2

3 WAC Reconciliation of monthly county treasurers statements to district records. Every school district shall reconcile amounts reported by the county treasurer with the district records for all funds. Any differences shall be noted and adjustments to school districts records shall be made if necessary. 3

4 Change to WAC The rationale behind replacing the phrase ending net cash and investments, revenues and expenditures with the word amounts is that the proposed language allows districts to reconcile in a more appropriate way and make sure that there is agreement between the county treasurers records and the school districts records. 4

5 Audit Guide The state auditor s planning guide from two years ago said: Last year we implemented a new approach to auditing both modified accrual and cash basis F-196 financial statements. As part of this new approach, a county treasurer reconciliation test will be required, with planning focused on assessing the need for further audit procedures to address any risks not already covered by the county treasurer reconciliation. The new language in the WAC does not alter this approach. Auditors will be using the comparison and the District s reconciliation of the F-196 to the F-197 as they have in past years. Quote from SAO Your auditor may request to see the district s reconciliation spreadsheets. These sheets should be initialed by the person doing the reconciliation and a second person with financial understanding. 5

6 ABFR Handbook The Administrative Budgeting and Financial Reporting Handbook Chapter V: F-197 County Treasurer s Report to School Districts Reconciliation of the F-197 County Treasurer s Report Template 6

7 Capital Region ESD 113 Tools General Ledger Debit/Credit Reference Guide F-197 Reconciliation Spreadsheet ESD 113 version with sample forms WESPaC Report Writing Instructions: General Ledger Trial Balance (GLTB) General Input History Report Revenue Detail Report Refund of Expenditure Report Refund of Revenue Report 7

8 General Ledger Accounts Debit/Credit Reference Guide ASSET ACCOUNTS = LIABILITY + FUND BALANCE ACCOUNTS Debit Credit Debit Credit Cash & Equivalents Liabilities 200 Imprest Cash Increase Decrease 601 Accounts Payable Decrease Increase 230 Cash on Hand Increase Decrease 602 Contracts Payable - Curr Decrease Increase 240 Cash on Dep w/ County Increase Decrease 603 Contracts Payable - LT Decrease Increase 241 Warrants Outstanding Decrease Increase 604 Accrued Interest Payable Decrease Increase 250 Cash w/ Fiscal Agent Increase Decrease 605 Accrued Salaries Decrease Increase 610 PR Deductions & Taxes Pay Decrease Increase 630 Due to Other Govts Decrease Increase Receivables 640 Due to Other Funds Decrease Increase 310 Taxes Receivable Increase Decrease 645 Interfund Loans Payable Decrease Increase 320 Due from Other Funds Increase Decrease 330 Due from Other Govts Increase Decrease Fund Balance 340 Accounts Receivable Increase Decrease 810 Restricted for Other Items Decrease Increase 350 Interfund Loans Rec Increase Decrease 815 Restricted/Unequalized Ded.Rev. Decrease Increase Cash Basis 360 Accrued Interest Rec Increase Decrease 819 Restricted to Fund Purposes Decrease Increase ASB, TVF 820 Committed to Encumbrances Decrease Increase 821 Carryover of Restricted Revenue Decrease Increase 825 Restricted for Skills Centers Decrease Increase 830 Restricted for Debt Service Decrease Increase DS Long Term Assets 840 Reserved for Inventory Decrease Increase 410 Inventory - Supp & Mat Increase Decrease 861 Reserve of Bond Proceeds Decrease Increase 420 Inventory - Lunchrooms Increase Decrease 862 Reserve of Levy Proceeds Decrease Increase 430 Prepaid Items Increase Decrease 863 Resere of State Proceeds Decrease Increase 450 Investements Increase Decrease 870 Unresvd, Desig Othr Items Decrease Increase 872 Committed to Minimum FB Decrease Increase 875 Unresvd, Degis Conting Decrease Increase 888 Assigned to Other Purpose Decrease Increase Imprest $$ 889 Assigned to Fund Purpose Decrease Increase CP/DS 890 Unreserved, Undesignated Decrease Increase GF Statement of Revenues, Expenditures and Changes in Fund Balance Debit Credit Debit Credit 530 Expenditures Increase Decrease 960 Revenues Decrease Increase 535 Other Financing Uses Increase Decrease 965 Other Financing Sources Decrease Increase 536 Transfers Out Increase Decrease This is only a partial list of G/L Accounts. See Chapter 4 of the Accounting Manual for Public School Districts for the complete list. 8

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10 District Name: Sample School District General Fund Period: MM/YYYY REVENUES EXPENDITURES Item 001 District Deposits + Cumulative totals from F197 Item 012 Warrants Issued + Cumulative totals from F197 Item 004 Schedule A Cash Incr + Cumulative totals from F197 Item 014 Warrants Cancelled - Cumulative totals from F197 Total revenues per Co Treasurer 0.00 Item 006 Warrant Interest Paid + Cumulative totals from F197 Item 011 Other Cash Decreases + Cumulative totals from F197 Total revenues per District Per budget status report Item 017 RAN Interest Paid + Cumulative totals from F197 Total expenditures per Co Treasurer 0.00 Difference to reconcile 0.00 Total expenditures per District Per budget status report Difference to reconcile 0.00 Reconciling items: From the following reports: Reconciling items: From the following reports: Refund of Expenditures Local receipt booked as decrease to GL 530 Refund of Expenditures Local receipt booked as decrease to GL 530 Refund of Revenues A/P booked as decrease in GL 960 Refund of Revenues A/P booked as decrease in GL 960 Cash on Hand (Beg) + Balance Sheet: GLTB Report - GL 200, 230 Beginning Accruals + Cash on Hand (Ending) - Balance Sheet: GLTB Report - GL 200, 230 Ending Accruals - Beginning Accruals Ending Accruals Balance Sheet: GLTB Report - GL 601, 605, 610 Balance Sheet: GLTB Report - GL 601, 605, 610 Balance Sheet: GLTB Report GL 320,330,340 USDA Commodities GL 960, Revenue 6998 Balance Sheet: GLTB Report GL 320,330,340 Beginning Inventories USDA Commodities GL 960, Revenue 6998 Ending Inventories Other increase + Transfer GL 535, 536 Other increase + Other increase + Other decrease - Other increase + Other decrease - Other decrease - Total reconciling items 0.00 Other decrease - Unidentified difference 0.00 Total reconciling items 0.00 Unidentified difference 0.00 Balance Sheet: GLTB Report GL 410, 420, 430 Balance Sheet: GLTB Report GL 410, 420,

11 Revenue Schedule A and Report 1197 contain state and federal monies passed through OSPI to districts. All revenue codes between are subsidiary accounts of GL 960 Revenue. Any cash received in the district that is not coded to GL 960 would be a balancing item on the F197 Reconciliation template. Examples: 660 Unearned Revenue, 965 Transfers 11

12 Expenditures GL 530 records the expenditures. Cash basis districts record expenditures as they are paid. Modified accrual basis districts record the expenditure as a liability when incurred. The expenditure is recognized in the fiscal year that it applies to. Modified accrual basis example: Textbook adoption received and paid for during summer for use in the upcoming school year would be recognized as an expenditure in the fiscal year. Examples: GL 535 Transfers out, GL 410 Inventory, GL 430 Prepaid items 12

13 Tips and Comments for Balancing the F-197 We recommend that automatic JE batch numbering systems not be used. Labeling the entries with ME, DR, LR and the fund and month as appropriate (LRGF1314) makes it possible to run reports showing your refund of revenues and refund of expenditures. Balance your F-197 monthly (or at least quarterly). Delay compounds the discrepancies and makes them more difficult to pinpoint. 13

14 Tips (continued) Being out of balance does not necessarily mean you have made an error. It could be the Treasurer has an error on their monthly report. It could be the ESD made a keypunch error inputting data from the Treasurer s report to EDS. The district will find these errors in the balancing process and timely corrections are to the district s advantage. Sometimes it is a timing issue that self corrects. Sometimes you are supposed to have a reconciling item. But, sometimes a district error has occurred and needs correction. Although 240, 241, and 450 balance to the Treasurer s Monthly Report, you can still have undetected accounting errors that are discovered in balancing the F-197. These errors need correction before beginning the Year-End Close F

15 Tips (continued) Local Receipts transferred or deposited with your County Treasurer and recorded in GL 230 Cash on Hand should balance to the Treasurer s Report Line Item No. 01. On-line statements allow you to verify your bank deposits before transferring to the Treasurer. Balance bank statements on a monthly basis verifying all deposits match the bank statement and your deposit slips. Make adjusting entries for NSF s, bank fees, supply purchases and ACH issues. The Accounting Manual has example journal entries in Chapter 7 for most situations you will encounter. This is available on OSPI s website. 15

16 Tips (continued) WESPaC User Tips: Make it part of your monthly process to run Crosswalk Maintenance. This will ensure that all your account activity is reflected in the reports you run. Also, run the Mismatch Account Report to verify all accounts are closing to the intended GL account. WSIPC has an AP Reconciliation tool at their SharePoint site that can be used to validate GL 601 is in balance. WSIPC recommends segregation of your liability GL s (600 series) to recognize individual activities (i.e. comp tax to GL 630) for ease in balancing. 16

17 Tips (continued) Items that could impact balancing are: Accrual entries Posting dates/timing issues Comp tax ACH rejects/voids Canceled warrants HCA (Special Education Medicaid reimbursement) Timely notification to County Treasurer of cancels, issues, and accounting adjustments 17

18 Contacts Cindy Adkins, Chair of the WASBO Small Schools Committee, Capital Region ESD113 Fiscal Business Analyst Denise Wolff, Chair of the WASBO Accounting and Budgeting Committee, Capital Region ESD113 Director School Finance 18