4/1/201 Region V Conference UFARS 101 April 04, 201 Sarah Miller, Presenter David Day, Presenter Minnesota Department of Education Division of School Finance 1500 Highway 6 West Roseville, MN 5511 Agenda Uniform Accounting and Financial Reporting System (UFARS) Overview MDE Website UFARS Manual UFARS Coding Structure Dimensions Revenue Coding Dimensions Assets, Liabilities and Fund Balance Coding Summary 2 1
4/1/201 UFARS Overview UFARS UNIFORM FINANCIAL ACCOUNTING and REPORTING STANDARDS Accounting and UFARS Overview ACCOUNTING, BUDGETING, AND REPORTING REQUIREMENT (Minn. Stat. 12B.77) Law 1976 Subdivision 1. Uniform financial accounting and reporting standards. Each Minnesota school district must adopt the uniform financial accounting and reporting standards for Minnesota school districts provided for in guidelines adopted by the department. All Minnesota school reporting entities are required by law to prepare financial reports and annual budgets. These financial reports include the detailed tracking of revenues and expenditures within UFARS fund classifications to meet legislative requirements and provide financial accountability for public fund allocations. 4 2
4/1/201 UFARS Overview http://education.state.mn.us/mde/index.html 5 UFARS Overview REVENUE CODING 6
4/1/201 UFARS Overview UFARS Manual Pages 4 7 EXPENDITURES 8 4
4/1/201 UFARS CODING STRUCTURE - EXPENDITURES 6 Dimensions 1 Fund 2 Organization Program 4 Finance 5 Object 6 Course FD 2 ORG PRG FIN OBJ CRS 17 Digits 9 Fund Dimension Five Fund Categories Operating Funds Non-Operating Funds Fund 01 General Fund Fund 06 Building Construction Fund Fund 02 Food Service Fund Fund 07 Debt Service Fund Fund 04 Community Service Fund Fund 47 OPEB Debt Service Fund Fiduciary Funds Fund 08 Trust Fund Fund 09 Agency Fund Fund 45 OPEB Irrevocable Trust Fund Proprietary Funds Fund 20 Internal Service Fund Fund 25 OPEB Internal Service Fund Account Groups Fund 98 General Fixed Assets Group Fund 99 General Long-Term Debt Group 10 5
4/1/201 Fund 01 General Fund 11 General Fund (01) General Fund (01) Activities District Administration Other Activities Operations & Maintenance Pupil Transportation District Instructional Educational Superintendent Student Support Programs Capital Expenditures General Fund is used to account for all revenues & expenditures not accounted for elsewhere. 12 6
4/1/201 Organization/Site Dimension (UFARS Manual Chapter 2) The purpose of the organization/site dimension is to identifies expenditures by a specific budgeted learning site or district-wide. A budgeted learning site is an organizational unit where students attend: Established for a specific purpose Registered with the Department as an official learning site within a district 1 In accordance with instructions provided for MARSS and STAR, expenditures that occur at more than three sites may be designated as District-Wide (Organization Code 005). District-Wide or Not Otherwise Identified by Budgeted Learning Site Used for activities that cannot be related to an individual budgeted learning site. In general, these program codes should be coded to Organization Code 005 (District-wide): Board of Education (010) Office of Superintendent (020) Instructional Administration (00) District Support Services (100 series) Community Education and Services (500 series) Fiscal and Other Fixed Cost Programs (900 series) 14 7
4/1/201 Organization/Site Dimension Typical budgeted learning sites are: Elementary, middle or secondary schools (whether or not it is in a separate building) or A budgeted learning site that is located in several buildings and is identified in the MARSS and STAR systems. Each reporting entity must use the same numbers in the UFARS reporting system as they use in the Minnesota Automated Reporting Student System (MARSS) and the Staff Automated Reporting System (STAR). 15 Budgeted Learning Sites: 001-004, 006-798, 800-997, 999 These codes should be used for budgeted learning sites. This must include, but not be limited to, expenditures for Basic Skills Education, expenditures pursuant to a sitebased management agreement, and area learning center expenditures. Following program codes should use budgeted learning sites : School Administration (050) Elementary and Secondary Regular Instruction (200 series) Career and Technical Education Instruction (00 series) Following program codes should use District-Wide (005) or 001-004, 006-999 budgeted learning sites: Special Education Instruction (400 series) Instructional Support Services (600 series) Pupil Support Services (700 series) Sites and Buildings (800 series) 16 8
4/1/201 Home School Sites (799) Record expenditures made by all home school sites. This Organization/Site code cannot be used as a budgeted learning site number. Tuition Billing Sites (998) Individual tuition payments for students served outside of the district. 17 Click Here 18 9
4/1/201 19 Program Dimension (UFARS Manual Chapter ) Encompasses all aspects of school district operations, including instructional, administrative and various support activities. Program Code 000 is not a valid code for expenditures. 20 10
4/1/201 Program Dimension Program Code Dimension ten categories: 1) Administration (010-099) 2) District Support Services (100-199) ) Elementary and Secondary Regular Instruction (200-299) 4) Vocational Education Instruction (00-99) 5) Special Education (400-499) 6) Community Education and Services (500-599) 7) Instructional Support Services (600-699) 8) Pupil Support Services (700-799) 9) Sites and Buildings (800-899) 10) Fiscal and Other Fixed Costs Programs (900-999) 21 Finance Dimension (UFARS Manual Chapter 4) Used to record revenues and expenditures that relate to an activity funded by a categorical aid or levy* revenue limited by: Minnesota Statutes Federal Regulations. Must be used in all cases for revenues and expenditures which relate to a restricted/reserved fund balance. * Categorical Aids or levy Categorical revenue formulas are generally used to meet costs that vary significantly between district (i.e., special education) or promote certain types of programs (i.e. career and technical aid, adult basic education aid). Safe Schools is a categorical levy. 22 11
4/1/201 Finance Dimension has 12 Categories (FY 201): 1) District Wide (000) 2) American Recovery and Reinvestment Act (ARRA) Stabilization (100-200)¹ ) State Supported Programs (00 series) 4) ARRA Targeted and Federal Formula Grants (400 & 600 series)¹ 5) Federal Aid Received Directly from Federal Sources (500 series) 6) Child Nutrition (701-710) 7) Transportation (711-79) 8) Special Education (740-760) 9) State Placement (761-770) 10) Levy Supported Programs (791-799) 11) Federal Competitive Grants (800 & 900 series excluding 80 & 85) 12) Career & Technical Education & School-To-Work (80 & 85) ¹Note: Most ARRA awards have expired. FY 201 available only for recoveries due to audits, reconciliations and entitlement adjustments. 2 Object Dimension (UFARS Manual Chapter 5) Identifies the service or commodity obtained as the result of an expenditure. This is the most detailed dimension 000 can not be used in the expenditure coding The object dimension has 8 categories OBJECT DIMENSIONS Salaries & Wages (100 series) Capital Expenditures (500 series) Employee Benefits (200 series) Debt Service (700 series) Purchased Services (00series) Other Expenditures (800 series) Supplies & Materials (400 series) Other Financing Uses (900 series) 24 12
4/1/201 Course Dimension Limited number of course codes assigned to a specific purpose Course dimensions assigned for designated years (000 010) Course dimensions assigned to track federal grants (000, 011 015) Birth to Two SPED Maintenance of Effort (620) AYP Schools Set Aside Codes (621 69) Staff Development SPED & Federal Programs Title I set asides (640 642) School Improvement Implementation Set Aside (667 669 ) Alternative Facilities Projects (016 019, 020 619, 64 666, 670 999) Student Activity (900 Series) 25 Course Code Matrix State Fiscal Year and Federal Award Year Federal Award Year 2010 2011 2012 201 2014 State Fiscal Year 201 2014 2015 Course Code 012 Course Code 011 Course Code 012 Course Code 000 Course Code 011 Course Code 012 Course Code 000 Course Code 011 Course Code 000 26 1
4/1/201 Course Codes Mandatory Set Asides Title I Set-aside course codes in UFARS FY 201 These course codes should only be used with Finance Code 401, with the exception of 640-642 which may be used in Federal Special Education reporting Current Prior 2nd Prior Year Year Year Course Code (000) (011) (012) Highly Qualified 64 627 621 LEA Level Activities 65 628 622 Neglected 66 629 62 Homeless 67 60 624 Parent Involvement 68 61 625 AYP School Choice / SES 69 62 626 AYP Professional Development 640 641 642 School Improvement Implementation 667 668 669 27 Chapter 10 Grid Permitted Code Combinations (UFARS Manual Chapter 10) Expenditure codes are divided into two basic categories: 1. Unrestricted expenditures that use unreserved revenues (Finance Code = 000). 2. Restricted expenditures that use reserved or restricted revenues (Finance Code 000). 28 14
4/1/201 Chapter 10 Grid FD ORG PRG FIN OBJ CRS 29 Chapter 10 Grid 0 15
4/1/201 Chapter 10 Grid Restricted Finance Grid Used for expenditures that require a finance code because they are funded by federal grants, state aid, or local levy which use is restricted by federal regulations or state statutes. The restricted grid layout is: Fin Description Funds Organization Program Object The finance dimension is the key dimension of this grid. Once a requirement for a finance dimension is determined and the finance number has been located on the grid, the remaining allowable expenditure code dimensions can be determined 1 Chapter 10 Grid REVENUE CODING 2 16
4/1/201 UFARS Overview UFARS Manual Pages 5 REVENUES 4 17
4/1/201 UFARS CODING STRUCTURE - REVENUE 6 Dimensions 1 FUND 2 Organization Program 4 Finance 5 Source 6 Course FD 2 ORG PRG FIN SRC CRS 17 Digits 5 Revenue Coding FD ORG PRG FIN SRC CRS The Source Dimension (UFARS Manual Chapter 6) Identifies the origin of the revenue received. 1) Local Revenues (000 Series) 2) State Revenues (200 and 00 Series) ) Federal Revenues Received through MDE and other State Agencies (400 Series) Federal Revenues Received Directly from Federal Sources (500 Series) 4) Other Revenues (600 Series) Local Sales, Insurance Recovery and Judgment Sale of Bonds and Loans Incoming Transfers from Other Funds 6 18
4/1/201 Revenue Coding FD ORG PRG FIN SRC CRS Finance Dimension Used to record revenues as well as expenditures that relate to an activity funded with a categorical aid or levy, or relates to a reserved fund balance. Each finance code explanation in the manual states whether or not the finance code needs to be used for UFARS revenue reporting. If a program is entirely state funded, federally funded, or relates to a restricted/reserved fund balance, use the appropriate finance code for both revenues and expenditures. If state aid payments for a program are combined with state aid for other purposes, and/or revenue for a program consists in whole or in part from property tax levy revenue, the finance dimension need not be used to identify these revenues (only use for expenditures). If there is an associated reserve fund balance, the finance code needs to be used for both expenditures and revenues. 7 Balance Sheet Accounts 8 19
4/1/201 UFARS CODING STRUCTURE Balance Sheet Accounts Dimensions 1 FUND FD 2 2 BALANCE (GNL) BAL Optional Local Use XXX 2or 7 or (8) Digits 9 FD BAL XXX Balance Sheet Accounts (UFARS Manual Chapter 8) Operating Funds Fund 01 General Fund Fund 02 Food Service Fund Fund 04 Community Service Fund Balance Sheet Accounts Non Operating Funds Fund 06 Building Construction Fund 07 Debt Service Fund Fund 45 Post Employment Benefits Debt Service Fund Fiduciary Funds Proprietary Funds Fund 08 Trust Fund Fund 20 Internal Service Fund Fund 09 Agency Fund Fund 25 Post Employment Benefits Fund 45 Post Employment Benefits Revocable Trust Debt Service Account Groups Fund 98 General Fixed Assets Group Fund 99 General Long Term Debt Group 40 20
4/1/201 FD BAL XXX Balance Sheet Accounts A balance sheet is a financial statement that reports the assets, liabilities, and fund balances of a district. Asset Accounts Categories Fund Balance Sheet Account Code Current Asset Accounts 01 09 and 20 101 19 General Fixed Asset Account Group General Long Term Debt Account Group Fund 20 and Account Group 98 Fund 20 and Account Group 99 140 149, 171 174 150 162 41 FD BAL XXX Balance Sheet Accounts A balance sheet is a financial statement that reports the assets, liabilities, and fund balances of a district. Liability Accounts Categories Fund Balance Sheet Account Code Current Liability Accounts 01 09 and 20 201 25 Long Term Liabilities Fund 20 and Account Group 99 250 262 42 21
4/1/201 FD BAL XXX Balance Sheet Accounts A balance sheet is a financial statement that reports the assets, liabilities, and fund balances of a district. Categories Fund Balance Accounts Balance Sheet Account Code Nonspendable 460 Restricted/Reserved 40 417, 42 428, 41 45 Restricted 464 Committed 418, 461 Assigned 462 Unassigned 422, 46 Investment in General Fixed 40 Assets (Account Group 98 only) 4 UFARS Overview Summary 44 22
4/1/201 UFARS Overview http://education.state.mn.us/mde/index.html 45 UFARS Overview REVENUE CODING 46 2
4/1/201 UFARS CODING STRUCTURE - EXPENDITURES 6 Dimensions 1 Fund 2 Organization Program 4 Finance 5 Object 6 Course FD 2 ORG PRG FIN OBJ CRS 17 Digits 47 UFARS CODING STRUCTURE - REVENUE 6 Dimensions 1 FUND 2 Organization Program 4 Finance 5 Source 6 Course FD 2 ORG PRG FIN SRC CRS 17 Digits 48 24
4/1/201 UFARS CODING STRUCTURE Balance Sheet Accounts Dimensions 1 FUND FD 2 2 BALANCE (GNL) BAL Optional Local Use XXX 2or 7 or (8) Digits 49 Accounting and UFARS Overview 6 Dimensions 17 Digits Income Statement Balance Sheet Dimensions 7 (or 8) Digits EXPENDITURE AND REVENUE CODES XX-XXX-XXX-XXX-XXX-XXX ASSET, LIABILITY, AND FUND BALANCE CODES XX-XXX-XX Expenditure Code Structure Revenue Code Structure FD ORG PRG FIN SRC CRS Asset, Liability or Fund Balance Code Structure FD BAL XX 50 25
4/1/201 Accounting and UFARS Overview REVENUE ACCOUNTS BALANCE SHEET EXPENDITURE GUIDELINE $ $ ASSETS LIABILITIES CLOSING PROCESS AFTER ALL ENTRIES HAVE BEEN MADE FUND BALANCE 51 Questions 52 26
4/1/201 MDE Financial Management Contacts Sarah Miller Patti Scott Education Finance Specialist Education Finance Specialist Division of School Finance Division of School Finance Sarah.C.Miller@state.mn.us or 651 582 870 Patti.Scott@state.mn.us or 651 582 8646 David Day Education Finance Specialist Division of School Finance David.Day@state.mn.us or 651 582 884 Karen Dykoski Supervisor, Financial Management, Facilities and Transportation Division of School Finance Karen.Dykoski@state.mn.us or 651 582 8766 UFARS Helpdesk: MDE.ufars accounting@state.mn.us MDE IT Helpdesk for technical questions or problems with the MDE website: MDE.ithelpdesk@state.mn.us 5 You Asked FAQ s For UFARS Submissions and Title Maintenance of Effort (MOE) questions, contact Patti Scott at Patti.Scott@state.mn.us or 651 582 8646. For Indirect Cost, Commissioner Approved Fund Balance Transfer and Audit questions, contact David Day at David.Day@state.mn.us or 651 582 884. MDE website: http://education.state.mn.us/mde/schsup/schfin/finmgmt/guiderep/index.h tml For (New) District Revenues and Expenditures Budget Form FY 2012 and FY 201 questions, contact Sarah Miller at Sarah.C.Miller@state.mn.us or 651 582 870 and the MDE website at: http://education.state.mn.us/mde/schsup/schfin/finmgmt/index.html 54 27
4/1/201 You Asked FAQ s For Statutory Operating Debt (SOD) and FY 201 School Finance Award for FY 2012 Financial Data questions, contact Sarah Miller at Sarah.C.Miller@state.mn.us or 651 582 870. For a list of the FY 201 School Finance Award Recipients reference the MDE website at: http://education.state.mn.us/mde/schsup/schfin/finmgmt/guiderep/index.html For Charter School Lease Approval questions, contact Patti Scott at Patti.Scott@state.mn.us or 651 582 8646. Upcoming School Business Bulletin #50 located on the MDE website: http://education.state.mn.us/mde/schsup/schfin/finmgmt/index.html 55 Other Contacts SERVS Financial How to gain access and utilize SERVS Financial mde.servsfinancial@state.mn.us Error messages and malfunctions when using SERVS mde.it helpdesk@state.mn.us Title Programs Title Programs mde.nclb@state.mn.us. Special Education Special Education Funds mde.spedfunding@state.mn.us. 56 28