Fiscal Year-End Closing 2005/2006

“Follow the Footsteps….

to a Great Closing”

Sonoma County Office of

Education

Year-End Closing Timeline

May/June 5/24 Year-End Closing Workshop 6/09 Close FY05-

Payables/Receivables 6/22 Last APY Run 6/22 Final Cash Transfers 6/23 Final Cash Deposits 6/28 Open PO’s Rolled to PCL’s

Page 3

Year-End Closing Timeline June/July/August

6/30 Board Approved Blanket Transfer Resolution

7/14 Use Tax Report 7/31 Final Journal Entries (JE & CJV)

Final PCL & AR Setups 7/31 Prior Year Screens Close at 4:30 pm

Page 3

SCOE’S TIMELINE• Budgets

– Start Up Forms – June 16– Budget Submission – June 30– Cash Roll – July 3– Adopted Budget (budget transfers) – July 3 / AUG 15

• Unaudited Actuals– Closing Checklist – July 31– Final Asset/Liability Roll - August

Page 4

FCS Batch Clean Up Review FCS Batch Control Report Identify Unposted Batches by Type of

Transaction Report Batch Contents Using Report

Option Delete Unposted Transactions Void Empty, Unposted 2005/2006

Batches Page 5

Prior Year Clean Up Must Be Performed Before Running

Current Year End Accruals Prior Year Account Balances Must Be

Zero by June 9, 2006: Accounts Receivable (prior year) – 9210 Accounts Payable (prior year) – 9510 Deferred Revenue – 9650

Open Receivable and Payable Reports Must be Zero by June 9, 2006

Page 7

Accounts ReceivableClean Up

Run “Open Receivables Report” If any Open Receivables Are Still Valid:

Liquidate (“Z-out”) Using AR Receipt Re~establish Using AR Setup

Run GLD120 Report for Object 9210 Clear 9210 to Zero

Clear Outstanding FCS Batches

Page 8

Accounts Payable Cleanup

Clear Outstanding APY Batches Run “Open Payables Report” If Any Open Payables Are Still Valid:

Liquidate (“Z-out”) Using PCL Payment Re-establish Using Payables Setup

Run GLD120 Report for Object 9510 Clear 9510 to Zero

Page 10

APY Batch Clean-Up

Review APY Batch Control Report Identify Unpaid Batches by June 21 Report Batch Contents Using District

Accounts Payable Prelist Report Delete Unprocessed Payments Void Empty, Unpaid 2005/2006 Batches All Batches PAID or VOID by June 22

Page 13

GASB 34 PREP

Preliminarily Run HP3000 data through SACSA2006All GASB 34 Segments

1. Print Fund Consolidation – SEE ALL YOUR DISTRICTS FUNDS!!!!

2. Print CE001- Capital Assets by Function

3. Print CE002- Capital Assets by Object

Analyze Above Reports For Account Code Errors

Page 15

GASB 34 Prep

Run HP3000 BDX by function and review report –

Why?

GASB 34 PrepGASB 34 presents by Function!!!!!!!!!!

Please…….

correct all errors noted in the previous steps prior to submitting your unaudited actuals to your accountant

Special Ed MOE Prep

• Determine Change in Special Ed MOE – Prior Year to Current Year

• Run Special Ed MOE Report in SACS2006ALL, Unaudited Actuals

• Make Corrections, If Necessary

• Be Prepared To Explain Differences If Expenditures Are Greater Than Prior Year

Page 18

Community Day School

• Determine Allowable Costs are Coded to Resource 2430, Goal 3550

• Run Community Day School Report in SACS2006ALL, Unaudited Actuals

• Make Corrections, if NecessaryPage 20

Final APY for 2005/2006

Thursday, June 22, 2006

DO NOT OPEN BATCHES UNTIL JULY 3

Run Final Vendor History Report

Page 21

Purchase Order To PCL Roll

Review Open PO’s

Close If Not To Be Received BY JUNE 30

Run “Encumbrances To Payables” Report

On 6/28, ALL OPEN PO’s ROLL to PCL’s• PCL Screens Will Be Closed 7:00 AM

Add/ Change/Delete PCL’s Until JULY 31Page 22

Use Tax Liability

Use Tax Rates: 7.75% Sonoma County 8.0% City of Sebastopol,

City of Santa Rosa

After 6/23, Run Use Tax Report FOR ALL FUNDS

Add Sales Tax from Sales of Equipment

Balance to GLD120 (by resource) FOR ALL FUNDS

Pages 23 - 29

Use Tax Liability

• Districts Being Reported By SCOE– Move ALL Use Tax to Fund 01– Resource 0000 With A Cash Transfer

• Transfer By June 22

• All Use Tax Reports Due To SCOE

By July 14, 2006

Holding/Clearing Accounts Clear to Zero:

9538 P&L Insurance Clearing 953x Employee Payroll Adjustments 9515 Stale Dated Warrants 9569 Payroll Mapping Errors

Adjust to Actual: 957x Health & Welfare Benefits 9555 (SUI), 9557 (SDI) 9580 Use Tax

Districts adjust all clearing to actual liability through June Reg. payroll. (Workers Comp to Fund 01, Resource 0000, SCOE will clear final June Supp.)

Page 30

• All Cash Transfers MUST be Processed by Thursday,

• June 22, 2006

Page 32

2005/2006 Accounts Receivable

Object 9229 should begin with a zero balance AR’s Setup by Districts:

Voc Ed Federal Grants (Res.3500-3699) Mandate Cost Reimbursement only if received NO AR’s for Federal PL 81-874 Funds Amounts owed to district for Rentals/Services Cafeteria Funds Use Due To/ From (9610/9310);

Cafeteria Accounts Use AR (Fund 01) & EP (Fund 93)

Lottery – 3rd/4th Qtr Data From Accountants Watch for Invalid Resources

Page 33

2005/2006 Accounts Receivable

SCOE Sets Up/Provides Spreadsheet: Title I PL 101-476 Lottery- 3rd /4th, If Necessary

Use AR Setup Program ONLY: Do NOT Use JE’s, Cash JV’s or Transfers

Add/Change/Delete AR Setups Until 7/31 Submit Signed FAR311 When Done

Page 34

Revenue Limit Adjustments

• Adjustments For:– Meals For Needy– PERS Reduction– Over collection of Property Taxes– Charter in Lieu of Property Taxes(7280)

• Reduction to State Aid(8011)/ Charters(8015)

• Increase to Due to Government(9590)Pages 36/37

Deferrals of June Apportionments

• SCOE will set up and reverse all June apportionments deferrals:

– Special Ed AB 602 Revenues– GATE, Adult Ed, Charter Schools General Purpose

Entitlement– Prior Year Adjustments (8019)

• Other Special Ed Fees For Service and reversal in July (object 5809)

• Categoricals:– Transportation – Resource 7230– School Safety – Resource 6405

Page 37

Multi-District Service Agreements

SACS reporting monitors interagency revenues for service agreements among school districts

Common types are:• Special Education• Transportation• Food Services

The district operating the program – the Local Operation Agency – needs to follow the “Contract for Services” accounting guidelines

Page 38

Multi-District Service Agreements

Local Operating Agency Accounting: Use a locally defined 9XXX resource Expenditures are coded with a goal 7110,

nonagency SACS looks at any 8677 revenue and requires

nonagency (goal 7110) expenditures

SCOE reviews all contracts for services relationships: Any District that receives revenues from other

districts will be required to adopt the Local Operation Agency accounting method

2005/2006 Accounts Payable Goods and/ or Services MUST BE

RECEIVED BY JUNE 30, 2006 Request Progress Billings Project DO NOT USE TO ACCRUE BETWEEN FUNDS

(except fund 93) Use Due To (9610),Due From (9310) Watch for Invalid Resources Open Purchase Orders Roll to PCL’s

6/28 - Cancel Any PO’s Not To Be Accrued Page 41

Year-End Payroll Details Payroll Fiscal Year Checklist & Auth. New Payroll Liability Cycle, Summer School & Deductions DNP Last Misc. Payroll Warrants – June 20 Payroll Accounts Receivable (9213) Raises and EFT Requests STRS and PERS Notes

Page 45

Cash Balance as ofJune 30

EACH FUND MUST Have A Positive Cash Balance

Estimate The Following Outgo: ALL MAY & JUNE PAYROLLS ALL APY Payments Loans to Subsidiary Funds

Estimate The Following Income: Revenue Limit Special Purpose Other Local Revenue

Page 48

IF CASH SHORTAGE IS ANTICIPATED

CALL

BARBARA TATMAN

NOW!!!!!

Trans – Tax /Revenue Notes

Must Show Fee For Borrowing

Must Follow Payment Schedule

Must Be Paid By May 1, 2006

Page 50

Cash Roll

• Clear All Invalid Resources

• Fund Balance and Cash Balance Must be Zero

• Make Necessary Corrections

• Must Be Done By June 22, or

• Cash Roll And APY Will Not HappenPage 51

PL 101 - 476

PL 101-476 (Resource 3310) Expend all Funds by June 30th See Table on page 53 of Closing

Manual USE IT OR LOSE IT

Page 52

PERS Reduction• PERS Reduction Rates and Payroll • Charge All Allowable Classified

Salaries to PL 101-476• No PERS Reduction for Charter

Schools• May Adjust PERS Reduction P2

Estimates to Actual During Closing of 2005/2006 Books

Page 54

Lottery

• Expend for Appropriate Instructional Expenses

• Resource 1100– Rate $125 per ADA

• Resource 6300– Rate $26 per ADA

• Transfers Out of 1100 Resource Require Additional SACS Reporting

• Your Auditor Will Audit Expenditures Pages 55 - 57

Interest Calculation

• Post Interest To Required Funds and Resources

• Restricted Resources – IMFRP

• Cash in County Treasury Report

• Average Quarter Balance x Rate/4=Quarters Interest

• Treasury Rates (See Page 59 of Manual)

Page 58

Restricted Maintenance Accounts

• Transfer to Resource 8150

• Calculated Amount must be 3% Total Adopted Budget

• Transfer to Deferred Maintenance From Resource 8150

Page 61

Fund Balance or Deferred Revenue

1st Record ALL Estimated Payables (PCL’s), Receivables (ER’s) and allowable Indirect Costs

Run GLD410 by ResourceDetermine FB or D Using CA School

Accounting Manual or the SACS Query Website

Pages 62 - 63

Fund Balance or Deferred Revenue

Deferred Revenue = Unspent money booked as a liability, revenue reduced and account 9650 is credited

Fund Balance = Unspent money can be carried forward into the next year

Call you SCOE Accountant for Assistance

Restricted Transfers Between State Programs

• Two Types of transfers now available– Mega-item Transfers (available since the 1990’s)– AB 602 Categorical Block Grant Transfers (new for

2005-06)

• Coding by object distinguishes the two types:– Mega-item = 8998– AB 825 = 8995, except for Supplemental Grants,

which use 8990Pages 65 - 72

Restricted Transfers Between State Programs

• Transfers allowable:– Mega-item allows 10% out and 15% in– AB 825 allows 15% out and 20% in for four of the

block grants:• School Safety Consolidated Competitive Grant (resource

7391)• Professional Development Block Grant (resource 7393)• Targeted Instructional Improvement Block Grant (resource

7394) – BUT THERE IS NO PERSENTAGE LIMIT FOR SUPPLEMENTAL GRANTS

• School and Library Improvement Block Grant (resource 7395)

Restricted Transfers Between State Programs

– AB 825 allows transfers in up to 20% of the state funding for two grants:

• Pupil Retention Block Grant (resource 7390)• Teacher Credentialing Block Grant (resource

7392)

• AB 602 transfers have a public hearing requirement (not required for the Mega-item)

Update Budgets THIS MEANS ALL FUNDS

Projected Ending Balances for the current fiscal year reflected in your 2005-06 SACS Budget package are only as good as your current updated budget

Last day for Board Approved Budget Transfers is June 30

Blanket Budget Transfer may NOT be used to Update Revenue- revenue updates are a DISTRICT responsibility

Page 73

Indirect Costs and Function Coding

Amount Determined by Actual Expenditures, Not Entitlement

7310-7349 (Inter-program) Must Net to Zero By Function

7350-7399 (Inter-fund) Must Net to Zero by Object & Function

Check Indirect Cost Rate Per Resource via the SACS Query Website• Food Services ~ 5.33% maximum• Adult Education ~5.38% maximum

Review Indirect Cost Rate in SACS2006ALL Check 7200 Function Coding

Page 75-78

Reviewing Resources

Restricted Resources Must Have a Positive or Zero Ending Fund Balance

Use GLD 410 by Resource to Review

Clear Negative Balances in All Funds

Do not Use Resource 0000 in Funds 11, 14, 30, 35

Page 79

County- Wide Year-End Entries

SCOE Will Enter or Provide Spreadsheet for District Entry Special Day Class ADA Transfer

PERS Adjustment Against General Fund

Lottery A/R’s

PL 101-476 (3310) A/R

PL 81-874 (3010) A/R

Revenue Limit (see Adjustment and Deferral Section)

Charter Due To/From For In Lieu Property Tax

Page 81

Blanket Budget Transfer Resolution

Resolution MUST BE Board Approved BY June 30

SCOE Will Prepare Transfer With District Help

Direct Service Districts • Use Resolution on page 83 of Closing Manual• SCOE will prepare Transfer

Large Districts • Use Resolution on Page 87

Page 83

Calendars

June, July, August

Appendix A

Join The SCOE Detectives For a

“Mystery Free” Closing

Crime Scene InvestigatorRodriguez

Laurel“Auditor At Large”

“Pinky” Tatman

Rosalie Landsbury

Agent 000 Adrian Monck

Sherlock Daugherty

Carmen “Blanca” Sandiego

Bambi Magnum P. I .