1

School Financial Services School Financial Services UpdateUpdate

Ask questions any timeAsk questions any time

School Financial ServicesSchool Financial Services SAFS System UpgradeSAFS System Upgrade FY 07–08 Accounting FY 07–08 Accounting

ManualManual FY 07–08 Budget UpdateFY 07–08 Budget Update FY 06–07 F196 UpdateFY 06–07 F196 Update

2

SAFS Systems Project UpdateSAFS Systems Project Update Why? The current systems are old!!Why? The current systems are old!! Who, What, When? A conversion project using $1.9 Who, What, When? A conversion project using $1.9

million appropriated in 05–07 budget.million appropriated in 05–07 budget. Current systems are being converted onto a web-Current systems are being converted onto a web-

based platform that will be accessed through the based platform that will be accessed through the EDS portal.EDS portal.

Systems will maintain current functionality with Systems will maintain current functionality with only minor enhancements. only minor enhancements.

Once all systems are converted, tested, and Once all systems are converted, tested, and implemented, additional enhancements will be implemented, additional enhancements will be made as funds are made available.made as funds are made available.

Training and user documentation will be available Training and user documentation will be available prior to the release of the converted systems.prior to the release of the converted systems.

We anticipate several systems will be ready to We anticipate several systems will be ready to process process 2007–08 school year data by September 1.2007–08 school year data by September 1.

3

FY 07–08 School District FY 07–08 School District Accounting Manual UpdatesAccounting Manual Updates

Kim Thompson, CPAKim Thompson, CPA

Supervisor, School District/ESD Supervisor, School District/ESD AccountingAccounting

(360) 725-6303(360) 725-6303

kim.thompson@k12.wa.uskim.thompson@k12.wa.us

4

2007–08 Accounting Manual Updates2007–08 Accounting Manual Updates The Accounting Manual is published cooperatively The Accounting Manual is published cooperatively

by OSPI and SAO. by OSPI and SAO. The School District Accounting Advisory The School District Accounting Advisory

Committee (SDAAC) makes recommendations for Committee (SDAAC) makes recommendations for updates to the manual in their role of advising on updates to the manual in their role of advising on accounting, budgeting, financial reporting, and accounting, budgeting, financial reporting, and related matters.related matters.

SDAAC meetings are scheduled now through SDAAC meetings are scheduled now through December 2007 for the 2008–09 Accounting December 2007 for the 2008–09 Accounting Manual updates.Manual updates.

The SDAAC web page:The SDAAC web page: http://www.k12.wa.us/safs/PUB/COM/SDAAC.asphttp://www.k12.wa.us/safs/PUB/COM/SDAAC.asp.. Has the complete description of changes to the 2007–08 Has the complete description of changes to the 2007–08

manual.manual. Has meeting agendas, materials, list of committee Has meeting agendas, materials, list of committee

members, etc.members, etc.

5

2007–08 Accounting Manual Updates2007–08 Accounting Manual Updates

Chapters 1, 2, 3, and 5:Chapters 1, 2, 3, and 5: These chapters need to be reprinted in These chapters need to be reprinted in

their entirety due to changes made which their entirety due to changes made which affected pagination.affected pagination.

The title of Chapter 5 is changed from The title of Chapter 5 is changed from “Revenue” to “Revenue and Other “Revenue” to “Revenue and Other Financing Sources.”Financing Sources.”

6

2007–08 Accounting Manual Updates2007–08 Accounting Manual Updates

Saul Haas:Saul Haas: Added references and definitions for Saul Added references and definitions for Saul

Haas Fund in Chapters 1, 9, and Appendix A. Haas Fund in Chapters 1, 9, and Appendix A. Saul Haas may be accounted for in the ASB Saul Haas may be accounted for in the ASB

Fund if the Saul Haas funds are immaterial Fund if the Saul Haas funds are immaterial to total ASB revenue. to total ASB revenue.

If Saul Haas Funds are material, they must If Saul Haas Funds are material, they must be entered in Fund 7 at year end on the F-be entered in Fund 7 at year end on the F-196 and will reduce the ASB fund balance. 196 and will reduce the ASB fund balance.

Immateriality is defined as less than 5% of Immateriality is defined as less than 5% of the ASB fund total revenue.the ASB fund total revenue.

7

2007–08 Accounting Manual Updates2007–08 Accounting Manual Updates

Chapter 5 – Revenue Accounts: Chapter 5 – Revenue Accounts: Use Revenue 6321 instead of Revenue Use Revenue 6321 instead of Revenue

6121 in 2007–08 because the Medicaid 6121 in 2007–08 because the Medicaid reimbursement is now coming from reimbursement is now coming from DSHS, not OSPI.DSHS, not OSPI.

8

2007–08 Accounting Manual Updates2007–08 Accounting Manual Updates

Chapter 6 – Expenditure Accounts:Chapter 6 – Expenditure Accounts: Section 5 Activity Code Description, Section 5 Activity Code Description,

Activity 72 Information Systems: Activity 72 Information Systems: Clarify description of included costs. Clarify description of included costs.

Section 9 CPF Expenditures, Type Section 9 CPF Expenditures, Type Code 32 Additional: Add “technology Code 32 Additional: Add “technology levy expenditures” to the list of levy expenditures” to the list of expenditures recorded in this activity.expenditures recorded in this activity.

Section 9, Expenditure Object Codes: Section 9, Expenditure Object Codes: Change language to make expenditure Change language to make expenditure object codes object codes optionaloptional..

9

2007–08 Accounting Manual Updates2007–08 Accounting Manual Updates

Chapter 7 – Journal Entries:Chapter 7 – Journal Entries: Sections 5 CPF and 6 TVF Journal Sections 5 CPF and 6 TVF Journal

Entries: Correct journal entries 14 Entries: Correct journal entries 14 and 16 to correctly reference GL 536 and 16 to correctly reference GL 536 Other Financing Uses – Transfer Out Other Financing Uses – Transfer Out instead of GL 535 Other Financing instead of GL 535 Other Financing Uses.Uses.

Section 13 Bond Issues and Bond Section 13 Bond Issues and Bond Refunding: Revise the bond issue Refunding: Revise the bond issue journal entry example and enhance journal entry example and enhance bond refunding guidance.bond refunding guidance.

10

2007–08 Accounting Manual Updates2007–08 Accounting Manual Updates Late-Breaking Potential Updates for Late-Breaking Potential Updates for

2007–08:2007–08: These items are driven by the 2007–09 These items are driven by the 2007–09

budget or other legislation passed by the budget or other legislation passed by the Legislature after our Accounting Manual Legislature after our Accounting Manual approval, hearing, and printing deadlines.approval, hearing, and printing deadlines.

Excess cost accounting: revenue 3121.Excess cost accounting: revenue 3121. Transportation: break out to-from.Transportation: break out to-from. CPF: pay for on-going license fees through CPF: pay for on-going license fees through

transfer to general fund.transfer to general fund. Watch for a bulletin announcing these Watch for a bulletin announcing these

updates at: updates at: http://www.k12.wa.us/safs/http://www.k12.wa.us/safs/..

11

FY 07–08 Budget UpdateFY 07–08 Budget Update

Mike Dooley, CSBOMike Dooley, CSBO

Supervisor, School District/ESD BudgetSupervisor, School District/ESD Budget

(360) 725-6305(360) 725-6305

mike.dooley@k12.wa.usmike.dooley@k12.wa.us

12

FY 07–08 Budget UpdateFY 07–08 Budget Update

F-195/F-203 Status:F-195/F-203 Status: The F-195 is scheduled for release The F-195 is scheduled for release

over the last weekend in April, over the last weekend in April, subject to the Legislature subject to the Legislature adjournment.adjournment.

The F-203 will be released The F-203 will be released approximately 2-3 weeks after the approximately 2-3 weeks after the Legislature adjourns.Legislature adjourns.

13

FY 07–08 Budget UpdateFY 07–08 Budget Update

Promoting Academic Success (PAS) Promoting Academic Success (PAS) Status:Status: Added revenue account 7163 in FY 2007–08 to Added revenue account 7163 in FY 2007–08 to

account for the interdistrict revenues related to the account for the interdistrict revenues related to the PAS program. This revenue account was not PAS program. This revenue account was not available for the FY 2006–07 budget. Should a available for the FY 2006–07 budget. Should a 2006–07 budget extension become necessary to 2006–07 budget extension become necessary to account for interdistrict revenue for PAS, OSPI account for interdistrict revenue for PAS, OSPI recommends using Program 63 in addition to recommends using Program 63 in addition to revenue 7100 for F-200, budget extension, revenue 7100 for F-200, budget extension, reporting.reporting.

ABFR Status:ABFR Status: ABFR Handbook is targeted to be complete mid-May ABFR Handbook is targeted to be complete mid-May

at which time it will be posted on our website at:at which time it will be posted on our website at: http://www.k12.wa.us/safs/INS/ABF/0708/hb.asphttp://www.k12.wa.us/safs/INS/ABF/0708/hb.asp..

14

FY 07–08 Budget UpdateFY 07–08 Budget Update

Budget Extension Reminder:Budget Extension Reminder: We know all of you are busy preparing your new We know all of you are busy preparing your new

year budgets, but don't forget any remaining year budgets, but don't forget any remaining current year budget extensions. August is the current year budget extensions. August is the final month to file your F-200 budget extensions final month to file your F-200 budget extensions with OSPI. Depending on when you submitted with OSPI. Depending on when you submitted your current year F-200 for approval and when your current year F-200 for approval and when you printed your new year F-195 budget you printed your new year F-195 budget document, you may need to update your new document, you may need to update your new year budget with state data after OSPI approval. year budget with state data after OSPI approval. This will allow your current year budget This will allow your current year budget extension to be accurately displayed in the extension to be accurately displayed in the middle column of your new year F-195.middle column of your new year F-195.

15

FY 07–08 Budget UpdateFY 07–08 Budget Update

Budget Extension Reminder:Budget Extension Reminder: If your district needs to increase the If your district needs to increase the

amount of current year appropriation, amount of current year appropriation, before incurring expenditures in before incurring expenditures in excess of current year appropriationexcess of current year appropriation your board of directors must adopt a your board of directors must adopt a resolution stating the estimated amount resolution stating the estimated amount needed. needed. Any appropriation resolution Any appropriation resolution adopted after the current adopted after the current appropriation level has been exceeded appropriation level has been exceeded shall be null and void to the extent shall be null and void to the extent that the current appropriation level that the current appropriation level has been exceededhas been exceeded. .

16

FY 06–07 F196 UpdateFY 06–07 F196 Update

Pam PeppersPam Peppers

Supervisor of School District/ESD Financial Supervisor of School District/ESD Financial ReportingReporting

(360) 725-6304(360) 725-6304

pam.peppers@k12.wa.uspam.peppers@k12.wa.us

17

FY 06–07 F196 UpdateFY 06–07 F196 Update

Indirect Cost Rate Calculation-additional Indirect Cost Rate Calculation-additional guidance for the distorting and indirect guidance for the distorting and indirect expenditure manual input items.expenditure manual input items.

GL 535, Other Financing Uses (Item 560) GL 535, Other Financing Uses (Item 560) has been opened in the General Fund has been opened in the General Fund (5601), Capital Projects Fund (5602), and (5601), Capital Projects Fund (5602), and the Transportation Vehicle Fund (5609). It the Transportation Vehicle Fund (5609). It is still open in the Debt Service Fund.is still open in the Debt Service Fund.

Activity 15, Public Relations, is open in Activity 15, Public Relations, is open in Programs 51, 52, and 97.Programs 51, 52, and 97.

18

Financial Reporting UpdateFinancial Reporting Update

The SAFS website (The SAFS website (www.k12.wa.us/safswww.k12.wa.us/safs) has ) has two new menu picks on the left hand side of two new menu picks on the left hand side of the page, Financial History Reports and the page, Financial History Reports and Indirect Cost Rates. The reports have been Indirect Cost Rates. The reports have been available for several years but are now more available for several years but are now more accessible.accessible.

Financial History ReportsFinancial History Reports Financial Reporting Summary–The most Financial Reporting Summary–The most

current year, 2005-06, is the first summary current year, 2005-06, is the first summary report on the list. Section 3 reports are in report on the list. Section 3 reports are in pdf and MS Excel format.pdf and MS Excel format.

Financial History Reports–multiple 5 year Financial History Reports–multiple 5 year financial history reports and a 3-Year financial history reports and a 3-Year General Fund Expenditure Matrix.General Fund Expenditure Matrix.

Apportionment Reports, F-195 Budget, and Apportionment Reports, F-195 Budget, and F-196 Annual Financial Statements.F-196 Annual Financial Statements.

19

Financial Reporting UpdateFinancial Reporting Update Indirect Cost RatesIndirect Cost Rates

5 Year Restricted Indirect Cost Rates.5 Year Restricted Indirect Cost Rates. Restricted and Unrestricted Rates to be Restricted and Unrestricted Rates to be

used in FY 2007-08.used in FY 2007-08. The Federal Indirect Agreement–The The Federal Indirect Agreement–The

agreement currently posted expired in agreement currently posted expired in February 2006. Until DOE accepts our February 2006. Until DOE accepts our current proposal districts may continue to current proposal districts may continue to use the 2001 agreement.use the 2001 agreement.

Federal Indirect Rate Frequently Asked Federal Indirect Rate Frequently Asked Questions.Questions.

20

Maintenance of Effort and Maintenance of Effort and Recovery and Carryover TemplatesRecovery and Carryover Templates

The Federal Cross-Cutting and Special The Federal Cross-Cutting and Special Education MOE tests are complete. The Education MOE tests are complete. The MOE templates have been updated and MOE templates have been updated and posted to our website under Training/Tools posted to our website under Training/Tools at at http://www.k12.wa.us/safs/TT/tt.asphttp://www.k12.wa.us/safs/TT/tt.asp. .

Districts are encouraged to access these Districts are encouraged to access these templates and run their own MOE tests for templates and run their own MOE tests for mid year and budget purposes.mid year and budget purposes.

Steve Shish has updated the 2006–07 Steve Shish has updated the 2006–07 Recovery and Carryover Spreadsheet Recovery and Carryover Spreadsheet through April on our website at through April on our website at http://www.k12.wa.us/safs/TT/tt.asphttp://www.k12.wa.us/safs/TT/tt.asp..

21

Thank you for comingThank you for coming

Other topics of Other topics of discussion?discussion?

Comments?Comments? Questions?Questions?