Annual Financial Report (AFR): BASICS

Transcription

1 Annual Financial Report (AFR): BASICS THANKS AND ACCOLADES TO: ALICE A POSADA DIRECTOR OF FINANCE MARION COUNTY DISTRICT SCHOOL BOARD

2 Agenda Class Designed for NEWBIES Financial Statement Users Fund Accounting Basis of Accounting ESE348 / Entry Spreadsheet ESE145 Footnotes to Financial Statements MDA

3 Financial Statement Users FDOE Taxpayers Citizens Legislative bodies Management Rating agencies such as Moody s and Fitch Creditors

4 Financial Reporting Financial reporting should be: Relevant Reliable Auditable Comparable Consistent

5 Fund Accounting Governmental accounting systems should be organized and operated on a fund basis. A fund is defined as a fiscal and accounting entity with a selfbalancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations.

6 Fund Accounting What types of funds are there? Governmental funds General Fund Special Revenue Funds Capital Projects Funds Debt Service Funds Permanent Funds

7 Fund Accounting (Continued) Proprietary Funds (business type activity) Enterprise Funds Internal Service Funds Fiduciary Funds Agency Funds Pension Trust Funds Private-Purpose Trust Funds Investment Trust Funds

8 Basis of Accounting: Governmental Fund Financial Statements Current Financial Resources Measurement Focus and the modified accrual basis of accounting Revenues, except for certain grant revenues, are recognized when they become measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. Expenditures are generally recognized when the related fund liability is incurred, as under accrual accounting. However: Debt service expenditures, claims and judgments, other postemployment benefits, and compensated absences, are only recorded when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions are reported as other financing sources. Allocations of cost, such as depreciation, are not recognized in governmental funds.

9 Unique Accounting Considerations: Capital Assets and Depreciation Compensated Absences OPEB COPs TANs and RANs

10 Unique Accounting Considerations Long term debt Principal and interest when due Government wide reflects all outstanding debt Issuance of Debt other financing source Deferred Inflows / Deferred Outflows Loss or Gain on Refunding Certain revenues

11 Florida School Districts Revenue Sources Florida Education Finance Program (FEFP) funds Based on FTE Weighted based on student services provided Local property taxes Federal through State funds Awarded through FDOE FLAGS Food Service Program

12 Special Consideration for Florida School Districts Other Financing Sources Inception of Debt Transfers In Sale of Assets Insurance Loss Recoveries

13 Special Consideration for Florida School Districts Other Financing Uses Transfers Out Payments to Escrow Agent

14 Financial Reporting Account structure defined by the Florida Department of Education in its publication Financial and Program Cost Accounting and Reporting for Florida Schools (Red Book). Expenses can be classified by: Fund Function Object Facility Program Project

15 Annual Financial Report Required by State Board of Education Rule 6A , Florida Administrative Code and Section (12)(b), Florida Statutes. Due September 11 of each year

16 Annual Financial Report Includes: ESE 348 Report of Financial Data to the Commissioner of Education (Excel) ESE 145 Superintendent s Annual Financial Report (Basic financial statements): Statement of Net Position (Governmentwide) Statement of Activities (Government-wide)

17 Annual Financial Report ESE 145 (continued) Balance Sheet Governmental Fund Basis Reconciliation of the Balance Sheet to the Statement of Net Position Statement of Revenues, Expenditures, and Changes in Fund Balance Reconciliation of the Revenues, Expenditures, and Changes in Fund Balance to the Statement of Activities Footnotes to Financial Statements/MDA

18 RSI: Required Supplementary Information Budget to Actual Statements for the General Fund and all Major Special Revenue Funds Other Post-Employment Benefits Funding Progress Schedule of Proportionate Share of Net Pension Liability Last 10 Fiscal Years Schedule of Contributions (FRS & HIS)

19 ESE 348: Form 348 Fund Accounting Basis / By Fund Type Major Funds / Other Governmental Aggregate FDOE upload/edit checks Basis for Conversion Entries (to conform to GASB Guidance) Entry Worksheet links ESE348 to ESE145 Statements (Government Wide Fund Basis Statements to GASB Statements)

20 Conversion Entries Purpose: To recognize all assets and liabilities in accordance with GASB Guidance Outcome: Statement of Net Position and Statement of Activities (GASB Statements) Reconciled to Fund Basis Government-Wide Statements

21 Annual Financial Report ESE 145 Reconciliation of the Balance Sheet to the Statement of Net Position Reconciliation of the Revenues, Expenditures, and Changes in Fund Balance to the Statement of Activities

22 Annual Financial Report MDA : Management s Discussion and Analysis Relevant Reliable Auditable Consistent Comparable Meaningful to Financial Statement Users & Stakeholders Peers

23 Annual Financial Report Footnote Disclosure : Advance Planning is critical GASB for Guidance Previous Year s Disclosure AG Template Peers

24 Budget preparation TRIM timetable

25 Research and sources of information Florida Administrative Code Florida Statutes Auditor General Florida Department of Education Florida Department of Revenue GASB FSFOA