Ramona Garner Supervisor, School District/ESD Financial Reporting

Size: px

Start display at page:

Download "Ramona Garner Supervisor, School District/ESD Financial Reporting"

Jeremy Farmer
5 years ago
Views:

1 Ramona Garner Supervisor, School District/ESD Financial Reporting With Denise Wolff, Director, School Finance Capital Region ESD 113

2 The F-196 is a required financial report submitted by your school district. It reports the district s financial condition, actual revenues and expenditures for the fiscal 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. OSPI relies on data presented in the F-196 to do analysis and provide reports to the Legislature, state and federal governments. R

3 Notice is hereby given to school districts and ESDs, in accordance with WAC , that failure to adhere to the due dates below shall result in a delay of apportionment payments. 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. Final Action Date Action October 25 November 1 November 8 November 15 School Districts - Final date for submission of completed F-196 data from the school district to the local ESD. The data will be submitted electronically and/or on an F-196 manual form. Districts not able to submit by the October 25 due date may request a waiver by or written notice to the ESD. ESDs - Final date for the ESD to review and forward the certification page back to the school district for signature. School Districts - The signed certification page is due from the school district to the ESD. ESDs - Final date the signed certification page by the ESD is due at OSPI, School Financial Services. R

In accordance with WAC 392-117-035, districts and ESDs that fail to adhere to

4 In accordance with WAC , districts and ESDs that fail to adhere to the due dates could have a delay of apportionment payments. November 15, 2016 R

5 Please make a note of these dates; it is not too early to start gathering the needed data and balancing system items for year-end closing. Starting now on this process will make meeting the listed deadline dates easier for you. R

6 As stated in the Addendum to Bulletin No , dated January 12, 2012, Attachment B, districts that coded staff under duty code suffix 4, for the purposes of recording the costs of innovative activities included in supplemental contracts, will submit a brief description of these innovative activities with the district s F-196. Please take the time to review your personnel codes before the end of the year. R

If your district will not be able to meet the November 15, 2016, deadline due to unusual or special circumstances, an extension must be requested in writing. Direct your request to T.J.

7 If your district will not be able to meet the November 15, 2016, deadline due to unusual or special circumstances, an extension must be requested in writing. Direct your request to T.J. Kelly at: If you run into difficulty when attempting to send an F-196 file to OSPI, please contact your district s vendor. After your file has been uploaded into the EDS system, you would then call OSPI if you experience difficulties. R

8 For reporting there will be two phases of reporting. Phase one is the preliminary report without the pension notes on the General Fund Schedule of Long-Term Liabilities. Phase two of the F-196 process will be the final process. In December files will be reopened for entering final pension information only. The final date will be set when the Department of Retirement Systems makes the final data available. R

Recovery and Carryover Spreadsheet Avoid recovery issues. Schedule of Expenditures of Federal Awards Template (SEFA). Maintenance of Effort Spreadsheet Pass/Fail.

9 Recovery and Carryover Spreadsheet Avoid recovery issues. Schedule of Expenditures of Federal Awards Template (SEFA). Maintenance of Effort Spreadsheet Pass/Fail. To/From Transportation Spreadsheet Only the cost of transporting students to and from schools should be coded to program 99. Fund Balance Reporting Tool Have backup for entries. Link: D

10 Make appropriate journal entries for grant claims and maintenance of effort. Check time and effort for federal grants. Prepare the Schedule of Federal Awards (SEFA). The data on your SEFA should tie to the F-196. SEFA instructions can be found in the ABFR Handbook Chapter XI on OSPI s website. Tip: Preparing these reports before closing the books allows you to take another look at your data and make any final adjustments. D

11 WAC Reconciliation of monthly county treasurer s 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 district records shall be made if necessary. The F-197 Cash File is OSPI s database file that contains information taken from the same source documentation supplied by the County Treasurer for each school district located in it s county. This information is entered by each ESD. Districts can access the F-197 Cash File through the OSPI EDS site. D

12 OSPI encourages comparing the F-197 Cash File monthly or at least quarterly, at a minimum. Compare the accuracy of your data entry and the data in OSPI s database. Comparisons done monthly or quarterly aids when running edits to check for F-195 budgetary reasonableness and F-196 accuracy in year-end reporting. The ABFR Handbook will be updated soon with instructions for completing comparisons for the districts financial reports to the F-197 Cash File. D

13 Field trips and extracurricular trips should be removed from program 99. Special education may require journal entries. Inventory. Revenue and expenditure accrual entries. Deductible revenue. USDA Commodities: Dr Cr Enter taxes receivable. D

14 Use the OSPI Tool for coding fund balance. Keep a printout of your tool in your year-end file. Be aware of the GASB 54 SAO interpretations for: restricted outside entity legally authorized. committed board resolution as set aside for specific identifiable purpose. assigned board appoints authority to an individual to make assignments of specific identifiable purpose. Maintain records of such assignments and adjustments. D Note: There have been recent interpretations that have changed the way fund balance is stated. Keep current on these issues.

15 All journal entries, direct receipts, and local receipts should be committed/batched. Verify entries for A/P and A/R are accrued to the correct year. Post payroll in the appropriate school year. Final S-275 Personnel Report adjustments should be complete. Duty code suffix 4 requires a written statement submitted with the certification verify suffix 4 coding is accurate. Verify the F-197 Cash File is still accurate after adjustments. D

16 Most of you should be familiar with the F-196 in the EDS platform. At some point you should have accessed the EDS system for igrants, Enrollment, S-275, F-195, F-200, and F-203, which are all on this platform. If you have not accessed the EDS platform, contact your ESD for assistance. R

The SAFS applications have been developed to be viewed with Microsoft s Internet Explorer 9.0 or higher. Results may be unpredictable using other browsers.

17 The SAFS applications have been developed to be viewed with Microsoft s Internet Explorer 9.0 or higher. Results may be unpredictable using other browsers. To help ensure your browser refreshes the application pages correctly, set the browsing option as follows in Internet Explorer: go to Tools -> Internet Options -> General Tab -> Browsing History -> Settings. Under the Check for newer versions of stored pages heading, select Every time I visit the website. R

Import your financial data to EDS. On the certification page: the maximum number of days should be 180, the basis of accounting populates from budget.

18 Import your financial data to EDS. On the certification page: the maximum number of days should be 180, the basis of accounting populates from budget. Remember to enter Private Purpose or Other Trust Funds. Be sure you pick up the correct beginning fund balance figures for all funds (restatements apply). If you made a change to last year s F-196 that resulted in a change to fund balance, you MUST enter it as a prior period correction. R

19 After you make your entries on any of the pages in EDS, hit the save button and then save and return once you have completed all entries for the particular page you are on. Do not hit your browser s back button. R

20 Chapter VI of the ABFR has information that you may find useful such as: Frequently Asked Questions with Answers The F-196 with Item Numbers Edits for F-196 F-196 Item Number Dictionary R

21 Voted figures should match what is on the F-197 Cash File. QZABs and QSCBs are reported as either voted or nonvoted bonds depending on the capacity used when issued. Report known claims and judgements. Refer to the Accounting Manual for clarification on leases and contracts payable. Compensated Absences Amount due within one year column Only report the principal amount of debt. D

22 Method for calculation of compensated absences should be vesting or termination. Report accumulated vacation unless in excess of maximum. Include FICA and Medicare in both sick leave and vacation leave calculation. Note: Note: Sick leave buyout requires a sick leave buyout policy. If the district has no policy, do not report. Keep current with evolving Compensated Absences issues. D

23 Enter any applicable amounts for E-rate, impact fees, mitigation fees and Edu Job funds. Enter yes on Cost-of-Living Increase Certification. Enter the Fire District payment. Enter Distorting items for programs 01-89, 98 & 99. Enter Indirect Expenditures for program 97. Tip: In EDS, if you click the arrow in front of the item entry cell, there is an explanation of what should be entered. R

25 What is an Indirect Cost Rate? An Indirect Cost Rate is a means of determining, in a reasonable manner, the percentage of allowable general management costs that benefit each federal program or activity. What is an Indirect Expenditure? Indirect costs (expenditures) are generally administrative costs such as the salaries and expenses for staff engaged in organization-wide (general) activities. R

26 Distorting items are unusual or rare occurrences that distort your expenditures for the year. Indirects allow the district to charge administrative costs relating to grants. The allowable charges reported from program 97 must be districtwide administrative costs. Legal costs entries are very restrictive. Costs must be related to board policy and legal interpretation of laws (not student or staff issues). Do not include expenditures for student records such as student records fees, software, or student records staff. R

27 Both distorting item entries and indirect entries affect the calculation of your district allowable indirect rate. Making these entries ensure that you are only charging your grant with allowable administrative fees. The F-196 is programmed to calculate the indirect rate based on the data you enter. There is a two year lag in the calculation. R

28 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 carryover or recovery. Other Resources in program 21 is used in the Special Education Maintenance of Effort (MOE) calculation. Pay attention to the resource category (state, federal, other). Tip: Save frequently. D

29 Expenditures automatically draw in from the program matrices. Resources are manually entered. State & Federal resources should tie to revenues (plus or minus carryover or recovery) D

30 Only one positive result is needed to pass MOE but it is best to verify using the calculation from the website. 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. The F-196 displays the most recent year so the district will need to verify passage if using the local test. This is a preliminary test. OSPI will run the final test in January and districts failing MOE will receive notification. Note: Districts have the opportunity to provide acceptable reasons for failing MOE by letter. D

31 D

32 Compare your General Ledger to the F-196 document to verify totals match. Verify that the Ending Total Fund Balance on the Certification Page is the same as the Total Fund Balance on the Balance Sheet and the Ending Total Fund Balance on the Statement of Revenues, Expenditures, and Changes in Fund Balance. Notify appropriate staff that no changes can be made to the year. Before submitting the F-196, run your edits. An error message will prevent your submission to your ESD. Research and understand why the edits are triggered. Correct issues in the system, import to EDS, rerun edits. Tip: Write explanation for your edits on the edit report DDD and submit them with the document for ESD review. D

33 The school district must also submit the following, when appropriate, pursuant to WAC : R If total actual expenditures exceed total appropriated expenditures in any fund, a written explanation on district letterhead 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. The superintendent or official designee should sign the letter. A copy of the State Board of Education waiver for a district operating less than 180 days. If the ending total fund balance is negative in any fund, a written explanation on district letterhead must be sent with the certification page presented as described above. The explanation should contain a plan which portrays how the district will eliminate the existing deficit fund balance.

34 If OSPI has not locked the data file (late November), you can make your corrections as follows: Send an to ESD requesting the file be returned. Make the corrections in your school district's data. After your ESD has told you that the file has been returned, electronically import the corrected data to EDS and notify ESD the file is ready. ESD will review the file and forward to OSPI. Rerun your copy of the F-196 for your files. If any ending fund balances have changed, adjust your current year beginning figures. A prior year adjustment entry may be needed. Submit a new certification page. D

35 Request the MS Word version of your F-196 document from Ramona Garner at OSPI by Upon receipt of your I will send the district s F-196 and instructions for making revisions. Don t forget to copy your ESD when making a revision request. Make manual highlighted changes to the data on all pages affected by the correction. Send the entire corrected F-196 document, with a brief explanation of the changes, to your ESD and OSPI. R

36 Send three (3) newly signed certification pages to your local ESD for their signature. One copy is for the district, one copy is for the ESD and one copy is for OSPI. Note: 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. Bulletins or financial reports issued by OSPI will not include the revised amounts. R

37 R The correction should be the correction of a material 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 directs a correction.

38 Templates for the notes are in the ABFR Handbook Chapter VI: Select Cash Basis, Modified Accrual Basis or GAAP. The pension reporting tool is on the OSPI website under Tools/Forms. If you have a fund balance policy, it should be disclosed in the notes. Tip: Preparing the financial reporting sections of the notes before the final close is a good second look at your data. D

39 Signs of material weakness in internal control structure Does the presentation of financial data follow the Accounting Manual guidance? Federal guidance review Ties to the F-197 Cash File Transparency Financial stability D

40 D R It is the district s responsibility to ensure the accuracy of the data submitted in the F-196. ESD reviews the document for reasonableness. Maintenance of effort, coding changes, fund balance, transfers, schedule of long-term liabilities, etc. OSPI does an overview. Certification page days operated, lock date, match total fund balances throughout document, supplemental page entries, preliminary vocational education, federal cross-cutting, maintenance of effort, etc.

41 D R After your ESD approves your F-196, and you feel that your financial statements are correct, you can proceed with your year-end close. However, we suggest you allow a week for OSPI to review the file before proceeding with your year-end close. It takes time after the deadlines to pull and review all the F-196 files. OSPI attempts to review quickly for any items that might need to be relooked at but it does take time to review files as they come in.

42 R There will be two phases of reporting again this year. Phase one is the preliminary report without the pension notes on the General Fund Schedule of Long-Term Liabilities. Phase two of the F-196 process will be the final process. In December files will be reopened for entering final pension information only. The final date will be set when the Department of Retirement Systems makes the final data available.

43 Bulletin No dated August 05, 2015, and Addendum to Bulletin No describe the changes in more depth.

44 Modified General Ledger Accounts: o The title of GL 872 is changed from: Committed to Minimum Fund Balance Policy to Committed to Economic Stabilization. o The title of Program 88 and Revenue accounts associated with Program 88 have been retitled from: Day Care to Child Care. Added: o GL 891 Unassigned to Minimum Fund Balance Policy. GL 891 closes to GL 890 on the F-196 Financial Statement Balance Sheet.

Changed: o Revenue 5500 Federal Forests is no longer a deductible revenue.

45 Closed: o Revenue Code 9300 Sale of Equipment is closed to the Capital Projects Fund. Opened: o In Program 88, Child Care: Activity 26, Health/Related Services, has been opened. Changed: o Revenue 5500 Federal Forests is no longer a deductible revenue. o The F-196 Schedule of Long-Term Liabilities is amended and reverts back to one schedule. Instructions regarding this can be found in the Addendum to Bulletin No

46 Questions and comments are always welcome and appreciated. Whenever possible, ing your questions is beneficial in assuring that OSPI understands your question and allows a paper trail for OSPI and the district if the question should arise again.

Denise Wolff, Director School Finance CR ESD Business Manager Conference, Vancouver WA

Denise Wolff, Director School Finance CR ESD 113 dwolff@esd113.org Objectives Learn practices to use throughout the school year to increase efficiency for the year-end process Understand issues involved