ANNUAL FINANCIAL REPORT UPDATES

Presented by:LouAnn Caldarella (lcaldare@state.pa.us) (717) 783-9003

Collette Kelly (ckelly1@state.pa.us) (717) 783-9102

School Finance DivisionLECS Comptroller’s Office

INTRODUCTION

LATEST UPDATES TO AFR (PDE

2057) GOALS FOR AFR 2006 AREAS OF IMPROVEMENT

2004-2005 AFR OVERWHELMINGLY SUCCESSFUL

YEAR FOR TIMELY AFR COLLECTION

$300 A DAY PENALTY WAS IMPLEMENTED THIS YEAR AND ASSESSED !

GOALS FOR AFR 2006

ACHIEVE MORE CONSISTENCY ON AFR STATEMENTS AND SCHEDULES

QUALITY ASSURANCE

CHANGES TO THE CHART OF ACCOUNTS FOR AFR 2006

LIST CAN BE FOUND ON SCHOOL FINANCE WEBSITE:

www.pde.state.pa.us/school_acct ACCOUNTING INFORMATION / MANUAL OF

ACCOUNTING /CHART OF ACCOUNTS/SUMMARY OF CHANGES

NEW VALIDATIONS FOR AFR 2006

CAPITAL RESERVE: DELETED OPTION TO ENTER 9110 AND 9120

OUTSTANDING LONG TERM DEBT- CHECK PRIOR YEAR END BALANCE TO CURRENT YEAR BEGINNING BALANCE

RICE SCHEDULE - ALLOWABLE ENTRIES FUNCTION 2300-WILL HAVE EXPLANATION LOADED

DUAL CAPACITY OF BOARD SECRETARY/BUSINESS MANAGER

FUNCTION 2500- AUDIT COST INTERFUND TRANSFERS – TRANSFER OUT MUST EQUAL

TRANSFER IN. THIS MUST ALSO TAKE INTO ACCOUNT TRANSFERS TO AND FROM PROPRIETARY FUNDS

MORE DETAILED AFR INSTRUCTIONS

DETAILED INSTRUCTIONS WILL BE AVAILABLE TO DOWNLOAD. FOR MORE INFORMATION REFER TO THE AFR USER MANUAL 2005-2006.

TARGETED AREAS OF IMPROVEMENT

STATEMENT OF INDEBTEDNESS (SOIN) SUPPLEMENTAL EXPENDITURE SCHEDULE REVENUES, EXPENSES AND CHANGES IN FUND

BLANCES (REG) RESTRICTED INDIRECT COST SCHEDULE

SOIN

PAYMENTS ON SOIN MUST BE REFLECTED ON THE FINANCIAL STATEMENTS

5110 (DEBT SERVICE) MUST MATCH AMOUNT ON REVENUE EXPENDITURES AND CHANGES IN FUND BALANCE (REG)

SOIN (CONT)

BE ATTENTIVE TO THE LINE THE ENTRY IS MADE ON.

SUPPLEMENTAL EXPENDITURES

NON PUBLIC TRANSPORTATION VALIDATION SHOULD NOT BE JUSTIFIED AS ”NOT PROVIDED” IF SUBSIDIES ARE ISSUED

DO NOT POST $1 AS AN ENTRY SIMPLY TO AVOID GETTING A VALIDATION

INFORMATION REPORTED ON SCHEDULE IS USED ON FEDERAL REPORT THAT DETERMINES TITLE I ENTITLEMENTS

REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE

INTERFUND TRANSFERS – Transfers from one fund must

be accounted for in the receiving fund.

This includes transfers to your Proprietary funds.

RESTRICTED INDIRECT COST SCHEDULE

IF RECORDING EXP’S 3100-500 AND 3100-600 IN PROPRIETARY FUND/REVENUES,EXP’S AND CHANGES IN FUND NET ASSETS (REP) ALSO RECORD TO RICE SCHEDULE /CAFETERIA FUND EXP’S

REVISED AFR’S

AFR REVISION FORM ON WEBSITE TO SUBMIT WITH REVISED FILE TO INDICATE WHAT AREA OF AFR IS BEING REVISED.

WHEN SUBMITTING A REVISION REMEMBER THAT WHEN DATA IS LOADED FOR TUITION RATE, AIE,ETC, THE CALCULATION WILL BE BASED ON THE LATEST DATA PROVIDED.

USEFUL RESOURCES

SCHOOL FINANCE WEBSITE www.pde.state.pa.us/school_acct

AFR 2006 USER MANUAL MANUAL OF ACCOUNTING CHART OF ACCOUNTS