Financial Review Workshop. Financial Review June, 2011

Transcription

1 Financial Review Workshop Financial Review June, 2011

2 Items to be Covered FY 2011 Mid Term Budget FY 2012 Budget ARRA Funds HB 192 HB 186 June

3 Items to be Covered Reporting to CVIOG Indirect Cost IRS 3% Withholding PCGenesis GASB 54 Chart of Accounts Update Special Education MOE June

4 FY 2011 Mid Term Budget June

5 QBE-2011 MT Convert Allotment Sheets back to HI of % to match funding Spreadsheet took existing allotment sheet with HI at 21.10% back to % June

6 Dual Enrollment Dual Enrollment grant $1.9M Provides funding for the costs incurred when students take course at post secondary school, (i.e.. counselors, student information ) Student currently reported with a M on FTE, which carries no QBE funding, but grant at $ per segment Tuition at post secondary school funded through lottery funds June

7 Health Insurance The Health Insurance rate for FY 2011 is %. The increased percentage for the majority of the year was to forward fund the SHBP, not to give more money for the year. The SHBP has been used to help balance the State s budget during this economic downturn, depleting its reserves for paying claims. Thus the need to forward fund. June

8 Health Insurance Non-certified rate changes in May to $ per month per covered employee. Certified percentage will drop to 1.429% for May and June payrolls June

9 Equalization Total funding limited to $436 million. No change at Mid term Three districts were appropriated more funds for errors and timing differences, $975,412 Funding is at 2/3 of formula, 65.9% Allocations were prorated based on the funding level June

10 Transportation Funds Pupil Transportation level of funding was reduced by an additional 4.00% in FY 2011 No additional cuts were taken at Mid Term The total appropriated is $133,083,261 No Bus Replacement funds appropriated in FY 2010 or FY 2011 June

11 Transportation Funds Bonds for Buses Funding for Bus Replacements funds to be provided with Bonds in FY 2011 Funds to carryover into next fiscal year $50 million Will have to submit copies of invoices to get reimbursed Funding $76,292 per bus. June

12 School Nurses In FY 2011 mid term, Funding level reduced by 4.00% ($436,500) This reduction implemented last fall. No further reduction to be taken. Total appropriations $26,399,520 June

13 Math & Science Teacher Supplement Will be funded as a separate grant Program Code 7050 Information was collected on October CPI data collection. Will fund teachers as they were reported at that time. Funding was received in the Supplemental Budget, $12.6 million Guidance can be found at the Policy Division web site: June

14 Math & Science Teacher Supplement Listing of individual teachers will be sent to each district with amount per teacher, includes benefits, % TRS 10.28% GHI % Medicare 1.45% Report is available in the CPI data collection for October 2010(2011-1) June

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16 Math & Science Teacher Supplement Two Reports Listing of Teachers with eligibility criteria Listing of Teachers with supplement amount June

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18 FY 2012 Budget June

19 Health Insurance The FY 2012 Budget uses % for certified. Non-Certified will have the rate of $ per month per employee covered. Budget document contains wording 10% increase in employee premiums or as near as possible ( Plan Year FY 2012). June

20 TRS Employer Rate No changes. The employer matching rate is 10.28%. The employee rate is 5.53%. June

21 QBE No change to formula weights Change from mid term allotment sheet Updated T&E based on October 2010 CPI No Hold Harmless Equalization and Local Fair Share updated No ARRA funds on the allotment sheet from FY 2011 June

22 QBE Increase in Austerity of approximately 1% of net state funds, $60.9 Million increase QBE Earnings less Local Fair Share less Austerity Total Austerity at 15.79% Statewide Added $12.6 Million for Math and Science Supplements Provided for continuation funding for the 8 existing charter systems grant (3.785% of Base QBE), funded at 84.21%( a 15.79% reduction) June

23 QBE Add $523K for Move On When Ready Students going full time at post secondary schools Tuition not funded through lottery funds Year 1 participants, funds will be pulled from systems allotment sheet (similar to Special Needs Voucher Program) Intended to cover 2 nd year participation in the program June

24 QBE Dual Enrollment grant $1.9M Provides funding for the costs incurred when students take course at post secondary school, (i.e.. counselors, student information ) Student currently reported with a M on FTE, which carries no QBE funding Tuition at post secondary school funded through lottery funds June

25 QBE Dual Enrollment Provide forward funding to fully fund dual credit courses at the appropriate weight for high school segment attended and true up funding using midyear FTE counts See HB 186 We are currently working on how this will be implemented through FTE and still answer the question of how much will this cost the State June

26 Transportation FY 2012 additional 2% reduction from FY 2011 Mid Term No Bus Replacement funds Buses = $25 million in Bond Funds June

27 Equalization Total funding limited to $436 million. Formula calculation decreased by 3.14% Reflects the decrease in value in digests Funding is at 2/3 of formula, 68% Allocations were prorated based on the funding level With proration, significant changes between districts effects everyone since the amount of funds are capped June

28 Local Fair Share Total capped at $1.697 billion, same as FY 11 and FY 2010 Formula calculation decrease by 1.98% Also reflects the decrease in the value of the digests (2009 Digest) Reduction is at 87% of formula compared to 85% in FY 2011 June

29 Training and Experience Training and Experience Directly related to number of staff reporting on fall CPI data collection T&E is a calculated $ amount, from which the percentage is derived in order to distribute throughout the formula Even though statewide T&E increased, 50% of the school districts had a decrease in T&E Directly caused by reduction in number of staff being reported on CPI because of budget reductions June

30 School Nurses In FY 2012, Funding level the same as FY 2011 Mid Term Total appropriations $26,399,520 Recalculation based on updated FTEs June

31 School Nutrition Reduction of 9.8% A reduction of 4.6% from the final FY 2011 allotments June

32 RESAs Reduce base grant by 8% from FY 2011 original 4% decrease from current FY 2011 Reduce ETC funds by $120K, 8% reduction 4% decrease from current FY 2011 Reduce Math Mentors $142K, 8% reduction 4% decrease from current FY 2011 June

33 ARRA Funds All ARRA funds expire 9/30/2011 Except Race to the Top and SIG ARRA No Stabilization Funds No Education Jobs Funds June

34 HB 192 State Education Finance Study Commission Evaluate the cost and resources needed to educate a child Basically everything is on the table to be reviewed June

35 HB 192 Timeline September 30, Interim recommendations December 31, Proposed legislation for interim recommendations September 30, Final recommendations completed December 31, Proposed legislation for final recommendations completed June

36 HB 192 Extended decision making time of the flexibility contracts for IE2 to June 30, 2015 Extended class size waiver through FY 2015 Extended expenditure controls for QBE and Twenty additional days waiver through FY Extended Teacher contracts being offered by May 15 through FY 2015 June

37 HB 186 Dual enrollment A student who is enrolled in dual credit course pursuant to shall be counted for the high school program or other appropriate program for each segment in which the student is attending such dual credit course. The Department will be issuing guidelines, which will include reporting of FTE. June

38 Reporting to CVIOG For fiscal years beginning on or after January 1, 2011 Submit copy of approved budget in pdf format Must be submitted within 30 days of adoption Unless told otherwise, submit a copy of one page advertise budget. Can submit your entire budget package. June

39 Reporting to CVIOG June

40 Reporting to CVIOG Select Local Government User Login Must create an account to be able to upload files Once you login, you will be able to upload your approved budget and audit report June

41 Reporting to CVIOG Submit an electronic copy of audit report. DOAA creates an electronic copy that can be used for this purpose. DOAA says they will submit a copy of the audit report for the audits they do. June

42 Reporting to CVIOG The House Bill 122 website allows users to view budgets and financial reports for a local governments, including other school districts By clicking on the Budget Documents in the View our Budget Documents section, you will be taken to a listing of all local governments for you to select from June

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45 CVIOG Also on the CVIOG web site is the Tax and Expenditure Data Center for Georgia Local Governments Includes financial and tax data for counties, cities and school districts June

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47 CVIOG The user must set up an account in order to view data Have the option to create profiles for different scenarios to view Allows for comparisons with other districts. Information based on DE46 data submitted to GaDOE (We have shared the DE46 data with them) June

48 CVIOG The CVIOG now offers online training courses Courses offered online Intro Governmental Accounting, Part I Intro Governmental Accounting, Part II Intermediate Governmental Accounting Internal Controls A/P and Cash Disbursements Internal Controls A/R and Cash Receipts June

49 IRS 3% Withholding Withhold 3% tax on certain vendor payments made by government entities after December 31, Delayed one year Regulations now final: A single payment of $10,000 or more, minimum $300 withholding Remit tax withholdings using current IRS deposit rules Requires reporting of withholding to vendors/irs on Form 1099-MISC June

50 IRS 3% Withholding Exception for governments making less than $100 Million of payments for property or services annually. Do not have final guidance on how to handle Payments by P Cards The $10,000 threshold is on a payment by payment basis rather than a billing basis Includes payments made for utilities June

51 IRS 3% Withholding Exceptions in Calculating the $100M Threshold Payments subject to withholding (Wages) Payments for employer benefits Real property, Interest, Principal June

52 IRS 3% Withholding Determine if your accounting system can handle a withholding tax on vendor payments (accounts payable system) PCGenesis can not, but currently none meet the $100 Million threshold June

53 Indirect Cost Rates for FY 2012 The FY 2012 Indirect Cost rates have been finalized and are available in the Financial Review application in the portal. June

54 PCGenesis We are still supporting PCG, no intention to stop supporting Looking at things we can do to work with outside vendors for services we do not offer June

55 GASB 54 Reorganization of Fund Balances for financial reporting purposes Nonspendable Inventories, prepaids, long term loans and receivables Restricted - Legally restricted: grants Committed Board action to set aside funds for a particular purpose June

56 GASB 54 Assigned Gov t action to constrain funds. Does not have to be Board action. Can be assigned to CFO, for example Unassigned Everything else not classified elsewhere. General Fund should be the only fund to report a positive unassigned fund balance. June

57 GASB 54 Chart of accounts will be modified to reflect these changes You will not change how you keep your accounting records These changes will be made in the creation of the financial statements June

58 GASB NonSpendable Fund Balance 770 Restricted Fund Balance 780 Committed Fund Balance 790 Assigned Fund Balance 799 Unassigned Fund Balance June

59 GASB 54 15% limit on fund balance calculation Unassigned + Assigned + Committed Less Assigned or Committed Reserve for unanticipated expenditures or deficiencies in revenue Less Assigned or Committed Reserve for capital expenditures June

60 FUND BALANCES / FUND NET ASSET Exhibit A Funds Objects Invested in Capital Assets, - Net of Related Debt Contributed Capital Restricted Net Assets (Proprietary Funds Only) Unrestricted Net Assets (Proprietary Funds Only) thru Nonspendable Fund Balance 100 / 600 / / 0751 / 0752 Restricted Fund Balance XX / 3XX 7XX 400 thru 600 Not thru 779 Committed Fund Balance 100 / 500 / 690 / thru 0789 Assigned Fund Balance 100 thru / 0754 / / 500 / 690 / 693 / Unassigned Fund Balances Total Fund Net Assets (Sum of Above) June

61 Exhibit C FUND BALANCES Funds Objects Invested in Capital Assets - Net of Related Debt 1XX Contributed Capital 1XX Restricted Net Assets (Proprietary Funds Only) 1XX thru 0730 Unrestricted Net Assets (Proprietary Funds Only) 1XX Nonspendable Fund Balance 100 / / 0751 / 0752 Restricted Fund Balance XX / 3XX 7XX 400 thru 600 Not thru 779 Committed Fund Balance 100 / thru 0789 Assigned Fund Balance 100 thru / 0754 / 790 Unassigned Fund Balances 100 / (Sum of Above) June

62 New Function Due to the demands of the federal programs needing to track grant administration expenses separately, but reporting in Function 2300 General Administration inflates these expenditures Created Function 2230 for Federal Grant Administration June

63 Special Ed MOE We used the FY 2010 expenditures compared to FY 2009 Have worked with Dept of Audits so both sides are in agreement Our calculations use just Function 1000, Program codes , 2090, 2310, 2620, 2810, 4120 We did both the aggregate and per pupil June

64 Special Ed MOE You can use all special education expenditures even if they are in other functions if this will help you meet MOE Remember that you must include these other expenditures in both years being compared June

65 Quarterly ARRA Reporting All ARRA grants require quarterly reporting Next round of reporting Opens June 20, 2011 Closes Noon July 1, 2011 Do to July 4 th holiday and districts closing that week, the collection will be due on July 1 June

66 Quarterly ARRA Reporting New guidance just issued states that we must use the Best Available Data If June payroll has not posted, must estimate June expenses. June

67 67 Contact Information Atlanta ( ) Russell Swindle - rswindle@doe.k12.ga.us Steve Lyle slyle@doe.k12.ga.us LaGrange ( ) Del Parker dparker@doe.k12.ga.us Naylor ( ) Rhonda Metts rmetts@doe.k12.ga.us June 2011

68 Contact Information John Dunn Georgia Department of Education 1652 Twin Towers East 205 Jesse Hill Jr. Drive, SE Atlanta, GA June