F-196 & Year End Issues

Transcription

1 F-196 & Year End Issues WASBO 2013 Denise Wolff, Director School Finance, Capital Region ESD 113 Marilyn Sollers, Fiscal Services Supervisor, NWESD 189 1

2 F-196 Defined Report F-196 is the required financial statement report of your school district. It reports your school district s financial condition, actual revenues and expenditures for the entire school year. The F-196 is used by school districts to comply with the requirements of financial reporting for OSPI and the State Auditor s Office (SAO), the regulatory agencies. Reports for the Legislature and OSPI pull data from the F-196 document. 2

3 Due Dates Issues The Administrative Budgeting Financial Reporting handbook states: Notice is hereby given to school districts and ESDs, in accordance with WAC , that failure to adhere to due dates will result in a delay of apportionment payments. Hint: Allow time for unexpected challenges, error messages, and power outages 3

4 Final Action Dates October 25 - Final date for submission of your completed F-196 data from the school district to ESD. The data is electronically transmitted in the EDS system. Notify the appropriate person at ESD once you have it ready to review. Districts not able to submit by the October 25 due date, should contact their local ESD before that date. November 1- Final date for the ESD to review. ESD returns the file for revision or if approved changes the status to Ready for OSPI Review. District prints certification page for signature. November 8 -The signed certification page is due from your school district to your ESD. November 15 - Final date your signed certification page is due from ESD to OSPI. 4

5 Weekend Due Dates 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 in accordance with WAC

6 Before You Finalize August Month End Enter and commit/batch all JV s, Direct Receipts and Local Receipts for the school year (should be done monthly) Commit/Batch Accounts Payable and Receivable in the appropriate year for accrual districts Post Payroll in the appropriate school year Complete grant claiming for the school year o Do your Recovery Sheet from the OSPI site and prepare your SEFA Verify that your F-197 Report is balanced (should be done monthly) Final S-275 adjusting entries should be complete Make adjusting entries 6

7 Yearly Adjustments To/From Transportation Spreadsheet OSPI Tools Field Trips, Extra Curricular Trips Special Education revenue/expenditure entries Maintenance of Effort Spreadsheet OSPI Tools Adjust Receivables Inventory Adjustments Accruals Deductible Revenues Time and Effort USDA Commodities DR and CR

8 Final Grant Claiming, State Programs and SEFA Finalize Grant Claims Maximize claiming / determine carryover if any allowed Check time and effort against claiming Do the Carryover/Recovery Spreadsheet on OSPI s Site Determine amount of funds already received that may be recovered or require carryover make appropriate JV s Review maintenance of effort Special Education / Federal Cross Cutting / Vocational / Indian Education Prepare the Schedule of Federal Awards SEFA should reflect the information presented in the F196 SEFA instructions can be found in the ABFR manual Chapter XI Preparing these reports before closing the books allows you another look at your data and make any final corrections. 8

9 Balance to the Treasurer s report and the F-197 WAC Reconciliation of monthly county treasurer s statements to district records. Every school district shall reconcile amounts report by the county treasurer with the district records for all funds. Any differences shall be noted and adjustments to school district records shall be made if necessary. The F-197 is OSPI s data base file that contains information from the county treasurer reports as entered by each ESD. Districts can access the F-197 file through the OSPI EDS Site Balancing/reconciling to the F-197 ideal to do monthly strongly recommend at least quarterly Verifies accuracy of entry of financial data in both the district s records and the OSPI data base. Meets the requirement to reconcile to the treasurer s statement if done monthly Avoids edit issues on the F-196 or provides explanation for some edits Some ESDs require the year end reconciliation be submitted with the F- 196 for review 9

10 Balance to the Treasurer s report and the F-197 OSPI has a template for reconciliation of F-197 in the ABFR manual Chapter V ESD 113 under School Fiscal Services also has a template for reconciling the F-197 Reports that assist with F-197/Treasurer report reconciliation Transaction Recap-Refund of Revenue and Expenditures Budget Status GL Trial Balance Your records should reflect what is reported with the County Treasurer Any discrepancies should be documented 10

11 Balancing the F197 Total Revenue From the F197 add Direct Deposits (item 001), and Cash Increases Total (item 004). This should equal budget status YTD revenues. Total Expenditures From the F197 take Warrants Issued (item 012) less Warrants Canceled (item 014) add Warrant Interest Paid (item 006) and other cash decreases (item 011) if IRS payment here. This should equal budget status YTD expenditures. Differences take into consideration accruals, pre-paid, refunds, transfers, inter-fund loans and other nonrevenue or expenditure transactions 11

12 Investments Balancing the F197 Item 450 on F-197 with GL 450 Warrants Outstanding Item 241 on F-197 with GL 241 Net Cash and Investments Item 100 on F-197 with GL 240 plus GL 450 less GL 241 Revenues itemized on the Treasurer s report i.e. Local Property Tax, Federal Forests, State Forest, Timber Excise Tax 12

13 The Schedule of Long-Term Liabilities The Voted Bonds figures should match what is reported on the F-197. The Non-Voted Bonds should match what is reported on the F-197. QZABs and QSCBs are reported on the County Treasurers reports as either voted or non-voted bonds depending on which capacity was used when they were issued. Any known claims and judgments should be reported on the schedule of long-term debt. Capital Leases, Contracts Payable, and NonCancellable Operating Leases are frequently confused: refer to the Accounting Manual for clarification. Compensated Absences 13

14 Capital Leases, Contracts Payable, and Non Cancellable Leases Capital Leases - An agreement that conveys the right to use property, plant or equipment, usually for a stated period of time that meets one of the criteria set forth in SFAS No. 13 for lease capitalization. Report principal only. Contracts Payable Agreements for goods or services including conditional sales contracts, installments purchases, and lease-purchase. Report only the principal amount of debt. Non Cancellable Leases - Leases that cannot be broken. 14

15 Compensated Absences GASB Statement 16 instructions in accounting manual, appendix C pages Report vacation leave liability including benefits (FICA and Medicare). Vacation leave related to services already rendered and eventual payment to the employee is considered probable. (normally all accumulated vacation leave unless in excess of maximum) Sick leave RCW 28A at the rate of one day for each of four days accrued leave, limited to 180 accrued days. Include FICA and Medicare in the calculation of liability. Must use Vesting or one of the Termination methods of calculation. Not applicable if the district does not have a sick leave buy out policy Make sure HR knows what information you will need before the end of the year as sometimes data can be hard to recreate after September payroll processing starts Verify reports from your data system are pulling the appropriate data 15

16 Other Items Review SPI subsidiary account codes and your close to accounts for the Capital Projects Fund Review open PO s in appropriate funds Liquidate Encumbrance Balances Encumbrance liquidation cannot be reversed (WSIPC) Use the new Fund Balance account definitions when distributing ending fund balances (visit OSPI Tools) Non-spendable, Committed, Restricted, Assigned, Unassigned 16

17 Commit Control Groups (WSIPC) Prepare Manual Entries/Check Tests Verify that all control groups for all funds have been committed All control groups must be committed before the year-end process is started Prepare data for the Resource to Expenditure Report Gather data for indirect and distorting entries Run tests for Maintenance of Effort Review the coding for Fund Balance GL s available on the OSPI Tools site. Fill out the template and file for the auditor review. 17

18 Resource to Expenditure Report For each program the total of the State, Federal, and Other resources must equal (to the penny) the program direct expenditures. Total of resource by category should equal revenues in category plus or minus change in fund balance. Other Resources in Program 21 is used in the Special Education MOE calculation. 18

19 Resources are manual input items. = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = State & Federal resources should tie to revenues (plus or minus carryover if revenue recognized) 19

20 Only one positive result needed to pass MOE but best to verify using the calculation from the web site. If Local test is needed to pass the prior year amount is the most recent prior year where the local amount was used to pass MOE F-196 displays last year so district will need to verify passage if using local test 20

21 Before You Submit Compare your General Ledger to the F196 document to verify totals match Notify appropriate staff that no changes can be made to the year Before submitting the F196, run your edits Research and understand why the edits are triggered Send explanations when you submit the report for ESD review 21

22 Issues When Submitting the F-196 The school district must also submit the following, when appropriate, pursuant to WAC : If total actual expenditures exceed total appropriated expenditures in any fund, an explanation must be sent with the certification page. The explanation should contain a confirmation that the over-expenditure exists and the action taken to prevent a recurrence. Any comments on computerized information messages A copy of the State Board of Education waiver approval or a statement covering the reason for a district operating less than 180 days. If ending total fund balance is negative in any fund, an explanation must be sent with the certification page. The explanation should contain a plan which portrays how the district will eliminate the existing deficit fund balance. 22

23 Correcting the F-196 After the final lock has been run: If OSPI has not closed the data file (probably in late November), you can make your corrections as follows: Contact your ESD and tell them you wish to make a correction. Your ESD will coordinate with OSPI to unlock the file. Go ahead and make the corrections in your school district's data. After your ESD has told you that the file has been unlocked, electronically transmit the corrected data to your ESD and notify them it is ready. ESD will review and forward to OSPI. Rerun your copy of the F-196 for your files. If any balances have changed adjust your current year beginning figures. Submit a new certification page. 23

24 Correcting the F-196 (cont.) If OSPI has closed the data file (late November), the only way to make corrections is as follows: Print the F-196 pages that require correction or request the MS Word F-196 document from Ramona Garner at OSPI. Make manual changes to the data on the pages affected by the correction. Send the corrected F-196 pages, with a brief explanation of the changes, to your ESD and OSPI. (Chapter 8 Accounting Manual for Public School Districts in the State of Washington.) Corrected amounts are not updated into computer databases maintained at OSPI. The revised F-196 pages will be filed with the district s original Report F-196. Bulletins or financial reports issued by OSPI will not include the revised amounts. 24

25 Correcting the F196 The following applies to the filing of corrections: The correction must be the correction of an error. Only unaudited years are eligible for correction. Years for which an audit has been completed by SAO are not eligible for correction, unless the auditor first agrees to the correction. 25

26 Definition of Materiality Materiality is defined as, the magnitude of an omission or misstatement of account information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement. (FASB s Statement of Financial Accounting Concepts No. 2) 26

27 Notes to the Financial Statements The Notes to the Financial Statements are essential in explaining significant accounting policies and circumstances that affect the district s financial position and results of operations. Notes in financial reporting are the responsibility of the school district, not the auditor, and accordingly are subject to audit as an integral part of the financial statements. 27

28 Cash vs. Accrual School districts with fewer than 1,000 full-time equivalent students (FTEs) and using cash basis accounting receive a cash basis opinion. The cash basis opinion states whether the financial statements are presented fairly, in all material respects, in conformity with the cash basis of accounting. Districts in the Compensated Absences Pool need to use the accrual method. School districts with an enrollment greater than 1,000 FTEs present their financial statements using the regulatory (F-196) basis of accounting. The regulatory basis opinion states whether the financial statements are presented fairly, in all material respects, in conformity with the regulatory basis of accounting. 28

29 Notes to Financials Template for the Notes is in Appendix B of the Accounting Manual OCBOA Cash Basis OCBOA Modified Accrual Basis GAAP Currently the most recent templates are in the Appendix of the OSPI Accounting Manual. Notes must be prepared prior to audit Recommend some notes be prepared prior to close of F-196 as a double check on data Cash Deposits with Financial Institutions Commitments under non-capitalized (operating) leases Construction and other significant commitments Disclosures about long-term liabilities Interfund balances & transfers Fund balance classification details 29

30 Internal Control Structure Single audit report on the internal control structure used in administering federal award programs. During the audit, a material weakness in the school district s internal control structure may be material errors or material irregularities in the financial statements that would be detected or prevented by the district s internal control structure. When a material weakness is discovered, the standard report form must be modified. The material weakness should be described and the reason for the weakness should be noted. 30

31 Changes to Come Taxpayers and other governmental entities want information about service efforts, costs, and accomplishments of governmental entities and consider this information a necessary element of financial reporting. This information, along with additional information, may help users assess the economy, efficiency, and effectiveness of a government and may help form a basis for voting or funding decisions. To be of value, the information needs to be of sufficient detail to permit comparisons with other years and other governmental entities. 31

32 Thank you for your participation Questions? Marilyn Sollers, Fiscal Services Supervisor, NWESD 189 (360) Denise Wolff, Director School Finance, CRESD 113 (360)