All Aboard for Federal All Aboard for Federal ReportingReporting

2009 Fall ASBO Conference2009 Fall ASBO Conference

September, 2009September, 2009

PresentersPresenters

Deene Dayton, Dept. of Legislative AuditDeene Dayton, Dept. of Legislative Audit

Susan Woodmansey, Dept. of EducationSusan Woodmansey, Dept. of Education

Bobbi Leiferman, Dept. of EducationBobbi Leiferman, Dept. of Education

Rob Huffman, Dept. of EducationRob Huffman, Dept. of Education

New Guidance on Title I Per School New Guidance on Title I Per School Expenditure ReportingExpenditure Reporting

School level expenditure data for 2008-School level expenditure data for 2008-20092009 Focus on expenditures related to instruction Focus on expenditures related to instruction

and support functions.and support functions. Will not include expenditures such as facilities Will not include expenditures such as facilities

operation and maintenance, transportation and food operation and maintenance, transportation and food service.service.

Will not include employee benefit costs.Will not include employee benefit costs. Will not include expenditures from federal programs.Will not include expenditures from federal programs. Will not include special education expenditures.Will not include special education expenditures.

New Guidance on Title I Per School New Guidance on Title I Per School Expenditure ReportingExpenditure Reporting

Data reported and available to DOE:Data reported and available to DOE: Total expenditures for salaries of instructional staff Total expenditures for salaries of instructional staff

(teachers), guidance counselors, librarians, Office of the (teachers), guidance counselors, librarians, Office of the Principal (school admin) by fund, function, objectPrincipal (school admin) by fund, function, object

PRF – districts reported contracted salaries for certified PRF – districts reported contracted salaries for certified staff by attendance centerstaff by attendance center

Assistance that may be needed from districts:Assistance that may be needed from districts: Above staff paid with federal fundsAbove staff paid with federal funds Allocation between middle (1121) and high school Allocation between middle (1121) and high school

(1131) if all reported in 1131.(1131) if all reported in 1131. Reporting Timelines:Reporting Timelines:

If supplemental data needed from districts – by early January, If supplemental data needed from districts – by early January, 20102010

Reports to USDOE – must be submitted by March 31, 2010Reports to USDOE – must be submitted by March 31, 2010

Special Education Maintenance of Special Education Maintenance of EffortEffort

Districts are required to file an MOE worksheet that Districts are required to file an MOE worksheet that compares FY08 to FY09.compares FY08 to FY09.

Blank MOE forms will be posted to the website. DOE Blank MOE forms will be posted to the website. DOE will assist school districts by providing a summary of will assist school districts by providing a summary of the financial data reported on the annual report to the financial data reported on the annual report to use in completing the MOE form.use in completing the MOE form. Both a protected and unprotected worksheets are available Both a protected and unprotected worksheets are available

based on the needs of the district reporting.based on the needs of the district reporting. Audited financial data should be used, if available.Audited financial data should be used, if available. Deadline to submit MOE form is October 23, 2009.Deadline to submit MOE form is October 23, 2009.

PREFERRED, may be submitted electronically (email PREFERRED, may be submitted electronically (email attachment)attachment)

Bobbi Leiferman decadata@state.sd.usBobbi Leiferman decadata@state.sd.us Paper copy mailed, please no faxed copiesPaper copy mailed, please no faxed copies

State Fiscal Stabilization Funds, State Fiscal Stabilization Funds, FY2010FY2010

Funds will be paid to districts in September.Funds will be paid to districts in September. Only one expenditure report must be submitted to DOE in Only one expenditure report must be submitted to DOE in

FY2010FY2010 Cash management policies of the federal government Cash management policies of the federal government

require district to have spent or to spend within 3 require district to have spent or to spend within 3 days of receiving the revenue.days of receiving the revenue.

General journal entries are still acceptable for FY2010.General journal entries are still acceptable for FY2010. Same prohibitions on utilization of funds as outlined in Same prohibitions on utilization of funds as outlined in

FY09.FY09. An expenditure report must be submitted by October An expenditure report must be submitted by October

55thth..

A District may A District may notnot use Education use Education Stabilization funds for –Stabilization funds for –

Payment of maintenance costs;Payment of maintenance costs; Stadiums or other facilities primarily used for athletic Stadiums or other facilities primarily used for athletic

contests or exhibitions or other events for which admission contests or exhibitions or other events for which admission is charged to the general public;is charged to the general public;

Purchase or upgrade of vehicles;Purchase or upgrade of vehicles; Improvement of stand-alone facilities whose purpose is not Improvement of stand-alone facilities whose purpose is not

the education of children, including central office the education of children, including central office administration or operations or logistical support facilities; administration or operations or logistical support facilities;

Financial assistance for students to attend private Financial assistance for students to attend private elementary or secondary schools, unless the funds are used elementary or secondary schools, unless the funds are used to provide special education and related services to to provide special education and related services to students with disabilities, as authorized by the IDEA;students with disabilities, as authorized by the IDEA;

School modernization, renovation, or repair that is School modernization, renovation, or repair that is inconsistent with State law; orinconsistent with State law; or

Restoring or supplementing a “rainy day” fund.Restoring or supplementing a “rainy day” fund.

Coding/Uses/Expenditures of SFSFCoding/Uses/Expenditures of SFSF

SFSF Revenue code = 4199, may be receipted to SFSF Revenue code = 4199, may be receipted to “any” K-12 fund. If used to purchase equipment – “any” K-12 fund. If used to purchase equipment – additional reporting may be necessary regarding additional reporting may be necessary regarding vendor paid.vendor paid.

Expenditures tracked separately by use of Expenditures tracked separately by use of accounting operational unit (recommend using 3accounting operational unit (recommend using 3 rdrd level of Software Unlimited).level of Software Unlimited).

Permissible to use GJ entry to record expendituresPermissible to use GJ entry to record expenditures GJ entry such as the below for elementary teacher GJ entry such as the below for elementary teacher

salaries:salaries: CREDIT 10-1111-CREDIT 10-1111-000000-110-000-000 (local expenditure)-110-000-000 (local expenditure) DEBIT 10-1111-DEBIT 10-1111-001001-110-000-000 (SFSF expenditure)-110-000-000 (SFSF expenditure)

ARRA Revenue CodesARRA Revenue CodesARRA - New School District Revenues Codes:

Revenue Code Name CFDA # Description

4145

ARRA-Impact Aid-School Construction Formula Grant 84.404A

Revenue received under the American Recovery and Reinvestment Act 2009 to provide resources for construction activities in federally impacted school districts.

4193ARRA-State Clean Diesel Grant 66.040

Revenue received under the American Recovery and Reinvestment Act 2009 to provide resources to reduce toxic emissions from diesel exhaust of public school buses.

4194

ARRA-Child Care and Development Block Grant 93.713

Revenue received under the American Recovery and Reinvestment Act 2009 to provide equipment to child care facilities to improve the quality of care.

4195ARRA-Title I Grant to LEA 84.389A

Revenue received under the American Recovery and Reinvestment Act 2009 to provide short term funding (2 to 3 years) for the educational needs of disadvantaged students (Title I, Part A ESEA of 1965).

4196ARRA - IDEA, Part B, 611 84.391A

Revenue received under the American Recovery and Reinvestment Act 2009 to provide short term funding (2 to 3 years) for special education and related services.

4197ARRA - IDEA, Part B, 619 Preschool 84.392A

Revenue received under the American Recovery and Reinvestment Act 2009 to provide short term funding (2 to 3 years) for preschool special education and related services.

4198ARRA - School Lunch Equip 10.579

Revenue received under the American Recovery and Reinvestment Act 2009 to obtain or replace equipment for school food service programs.

4199ARRA - State Fiscal Stabilization Funds 84.394

Revenue received under the American Recovery and Reinvestment Act 2009 to provide relief to state and local government budgets in order minimize and avoid reductions in education.

Federal Accountability (tracking Federal Accountability (tracking federal expenditures with federal expenditures with

software)software) Accountability on expenditure of funds is mandated.Accountability on expenditure of funds is mandated. District software provides coding to allow easy tracking of District software provides coding to allow easy tracking of

revenues and expenditures.revenues and expenditures. Each ARRA grant award must be tracked separately from Each ARRA grant award must be tracked separately from

regular allocations of IDEA and Title I.regular allocations of IDEA and Title I. IDEA ARRA funds IDEA ARRA funds must be expended in the Special must be expended in the Special

Education FundEducation Fund.. When authorized - if using the allowance to transfer state & When authorized - if using the allowance to transfer state &

local funds not in excess of 50% of increase in IDEA funding – local funds not in excess of 50% of increase in IDEA funding – these funds must be tracked too. Suggestion is to use these funds must be tracked too. Suggestion is to use software to track – use of operational code.software to track – use of operational code.

Budgets will include a much greater level of detail.Budgets will include a much greater level of detail.

Delinquent School AuditsDelinquent School Audits

School districts are required to have at least bi-annual audits School districts are required to have at least bi-annual audits (SDCL 4-11-7.1). (SDCL 4-11-7.1).

Responsible fiscal management of public funds requires DOE Responsible fiscal management of public funds requires DOE to ensure compliance to auditing requirement.to ensure compliance to auditing requirement.

Lack of fiscal oversight in this area may allow for Lack of fiscal oversight in this area may allow for mismanagement of public funds.mismanagement of public funds.

DOE is discussing policies that will prompt action of school DOE is discussing policies that will prompt action of school districts that are delinquent.districts that are delinquent.

Ultimately the responsibility to complete and file an audit lies Ultimately the responsibility to complete and file an audit lies with the school district. with the school district.

How can a school district ensure timely submissions by How can a school district ensure timely submissions by auditors?auditors? Write specific timelines in the contract with auditor.Write specific timelines in the contract with auditor. Frequent communication with auditor on status of audit.Frequent communication with auditor on status of audit.

Misc. TopicsMisc. Topics Needed ASAP - Workgroup to update Records Management ManualNeeded ASAP - Workgroup to update Records Management Manual

Last updated in 1985Last updated in 1985 No mention of electronic data file retentionNo mention of electronic data file retention No mention of E-rate records retention (requirement for this federal funding)No mention of E-rate records retention (requirement for this federal funding) Need other school administrators to participateNeed other school administrators to participate

First half ECF needed? Please contact DOE if it would be a First half ECF needed? Please contact DOE if it would be a financial hardship to wait for 2financial hardship to wait for 2ndnd half funding. half funding.

Annual Data ReportingAnnual Data Reporting Allocation of SE administration and other costsAllocation of SE administration and other costs Reconcile debt service payments to Schedule of Long Term Debt Reconcile debt service payments to Schedule of Long Term Debt Appropriate coding for Capital LeasesAppropriate coding for Capital Leases Late filers – each year more and more districts wait to file until the last Late filers – each year more and more districts wait to file until the last

few days before August 15few days before August 15th.th.

Depreciation expense in Food Service Fund Depreciation expense in Food Service Fund Buying instructional computers from function 2227Buying instructional computers from function 2227 Allocation of Title I expendituresAllocation of Title I expenditures