Transcript School Accounting 101 - Electronic Resource Center

School Accounting 101
Presented by:
Mary Kay Beer
Chief, School Accounting Section
LouAnn Caldarella
Staff Accountant
School Finance Division
LECS Comptroller’s Office
Let’s look at the numbers
• This year we had 707 reporting entities
submitted by November 19
– 501 School Districts
– 29 Intermediate Units
– 102 Charter Schools
– 67 Vocational Technical Schools
– 8 Special Schools
285
18
62
42
7
Back to Basics - Fund
Reporting
• Entities that report using governmental
accounting, must establish their records
based on the fund accounting system.
• All financial activities that occur within
your school must be accounted for in
one of the 11 governmental fund types.
• All funds for your LEA must be reported
on the AFR.
• A minimum number of funds should be
maintained. Separate physical
accounts do not require separate funds.
• It is required that all capital projects
funds be folded into one fund and all
debt service funds be folded into one
fund for Commonwealth financial
reporting purposes.
• Student Activity funds are agency funds. Use
fiduciary fund 81 on the AFR. Some
examples of student activity funds are the
ski club and drama club.
• Fiduciary funds – The only type of Trust fund
that is accounted for as a Fiduciary fund is
one that holds money for someone other than
the LEA. If this money is for your school,
then it is not to be recorded as a fiduciary
fund.
Major Fund Criteria
• If the fund does not fit the criteria for a Major
fund, then it must be classified as a NonMajor fund and reported on the fund
statements in that column.
• To meet the qualification for "Major Fund"
status under GASB Statement #34, any given
fund element must exceed both the 5% and
10% thresholds.
• The General Fund and Food Service Funds
are considered major funds.
Revenue Recognition
• Payments received in July and August
that were applicable to the prior year,
should be accrued. One example would
be transportation.
• Do not confuse these with payments
actually for the new fiscal year.
• Social Security reconciliation revenue
should be accrued to the prior year.
Revenue Recognition cont’d
• The payment letters and form 2548 are tools
for your use in determining where to properly
account for revenues and deductions. These
are checked on your AFR for accuracy of
reporting.
• There are validations to ensure that your
school report matches what is reported on the
2548.
• You will be contacted for discrepancies.
Reconciliation Statements
• Crosswalk the fund financial statements
to the entity-wide statements.
• We were very lenient up to this point in
accepting the wording on these
statements.
• LEAs need to explain why there are
differences between these financial
presentations.
Sample Reconciliation Information
for the Statement of Activities
• Total net change in fund balances governmental funds
$
XXX,XXX
• Amounts reported for governmental activities in
the statement of activities are different because:
– Capital outlays are reported in governmental
funds as expenditures. However, in the
statement of activities, the cost of those
assets is allocated over their estimated useful
lives as depreciation expense. This is the
amount by capital outlays exceeded
depreciation in the current period.
X,XXX,XXX
– Some property taxes will not be collected
for several months after the District's fiscal
year ends, therefore they are not
considered as "available" revenues and
are deferred in the governmental funds.
Deferred tax revenues increased by this
amount this year.
XX,XXX
– Repayment of bond principal is an expenditure
in the governmental funds, but the repayment
reduces long-term liabilities in the statement of
net assets. This is the amount by which
proceeds exceeded repayments.
XXX,XXX
• Change in net assets of governmental
activities
$
X,XXX,XXX
Vocational Education
• Starting with fiscal year 04-05 reporting, there
will no longer be an elementary column in
function 1300.
• The only expenditures for a school entity
other than a vo-tech in the 1300 function
should be for PDE approved vo-tech
programs.
• Refer to https://www.cats.ed.state.pa.us
to see if your program is PDE approved.
Why is AFR Accuracy
Important?
•
•
•
•
Title 1 money to PA
Actual Instructional Expense
Restricted Indirect Cost
Requests by taxpayers, other states, the
legislature, PSEA and PSBA
• Tuition Rate – used to calculate
payments/deductions for Incarcerated Ed,
PRRI, APS, 1305 & 1306 students
• Federal Reports
– Use the information extracted from the
revenues, expenditures and statements.
– Sent to the USDE and used in the
calculation for Title I money to PA.
– Also used in a variety of reports comparing
spending and resources for our state
versus the other 49 states.
AIE
• Combination of School Finance and Child
Accounting responsibilities and uses.
• Defined by PA Public School Code, Section
2501, paragraph 11.1
• Based on AFR data (SF), WADM (weighted
average daily membership) calculation(CA)
• To be used by AVTS’ and the Dept of
Education for various calculations.
• Component used in the calculation of
Secondary Voc Ed Subsidy.
Tuition Rate
• Pennsylvania School Code of 1949, Sections
2561 and 2562 is the legislative authority
underlying the certification of the Tuition Rate
Calculation.
• Rates are based on the school’s Annual
Financial Report (AFR) PDE-2057.
• To be used by schools to calculate charges
for nonresident students attending the school.
Details of Tuition Rate Form
• Tuition Rate is based on 2003-04 school year for
use during the 2004-05 Fiscal Year.
• School Entity Share of Social Security (7810) and
Retirement (7820).
• Broken down by Elementary (K-6) and Secondary
(7-12).
Tuition Calculation: Example 1
SUBFUNCTIONS
-----------1100
@
1200
1300
1442
1490
2110
2120
2140
2150
2190
2250
2360
2380
2600
TOTAL
100,220,230
------------------17,691,726.41
3,954,478.42
300,600
-------------------1,124,105.54
73,984.23
0.00
0.00
0.00
248,180.99
598,432.21
295,840.30
0.00
0.00
725,644.63
0.00
0.00
0.00
251,049.38
0.00
0.00
0.00
248,180.99
598,432.21
295,840.30
0.00
0.00
725,644.63
0.00
1,633,702.89
251,049.38
1,449,139.15
26,597,145.00
##
0.00
1,633,702.89
(A)
25,148,005.85
TOTAL
EXPENDITURES
------------------18,815,831.95
4,028,462.65
EQUIVALENT FULL-TIME ADM
5,658.481
INSTRUCTION COST PER PUPIL IN ADM
4,700.40
OVERHEAD COST PER PUPIL IN ADM
1,846.97
RENTAL CHARGE PER PUPIL
ANNUAL TUITION CHARGE PER PUPIL
8.00
6,555.37
Tuition Calculation: Example 2
SUBFUNCTIONS
-----------1100
@
1200
1300
1442
1490
2110
2120
2140
2150
2190
2250
2360
2380
2600
TOTAL
100,220,230
------------------17,691,726.41
3,954,478.42
300,600
-------------------1,124,105.54
508,367.05
0.00
0.00
0.00
248,180.99
598,432.21
295,840.30
0.00
0.00
725,644.63
0.00
0.00
0.00
251,049.38
0.00
0.00
0.00
248,180.99
598,432.21
295,840.30
0.00
0.00
725,644.63
0.00
1,633,702.89
251,049.38
1,883,521.97
27,031,527.82
##
0.00
1,633,702.89
(A)
25,148,005.85
TOTAL
EXPENDITURES
------------------18,815,831.95
4,462,845.47
EQUIVALENT FULL-TIME ADM
5,658.481
INSTRUCTION COST PER PUPIL IN ADM
4,777.17
OVERHEAD COST PER PUPIL IN ADM
1,846.97
RENTAL CHARGE PER PUPIL
ANNUAL TUITION CHARGE PER PUPIL
8.00
6,632.14
FUNCTIONS
------------1100
1200
1300
1400
1600
2100
2200
2300
2400
2500
2600
2700
2800
2900
3000
4000
TOTAL >>
220 SS TOT EXP
--------------828,237.24
85,094.14
40,802.99
86,497.90
0.00
40,120.90
36,206.73
103,372.00
20,685.48
14,432.00
134,729.00
2,434.00
6,614.08
0.00
15,172.19
0.00
---------------1,414,398.65
220 SS TOT EXP
LESS FED EXP
NET 220 SS EXP
1,414,398.65
96,829.66
1,317,568.99
7810 SS REVENUE
DIVIDED BY NET SS
PA SHARE OF SS
701,401.79
1,317,568.99
0.5323
ONE
LESS PA SHARE
* SCH ENTITY SS SHARE
1.0000
0.5323
0.4677
220 SS FED EXP
---------------537.04
8,949.14
166.99
70,998.90
0.00
9,110.90
414.73
0.00
11.48
0.00
0.00
0.00
6,614.08
0.00
26.40
0.00
---------------96,829.66
230 RET TOT EXP
---------------221,187.49
23,903.10
10,567.19
14,051.55
0.00
9,326.33
8,558.50
25,667.00
5,370.46
3,755.00
40,637.60
0.00
824.25
0.00
3,949.15
0.00
---------------367,797.62
7820 RETIRE REV
DIVIDE BY 230 RET
PA RETIRE SHARE
ONE
LESS PA SHARE
** SCH ENTITY RETIRE SHARE
179,000.00
367,797.62
0.4867
1.0000
0.4867
0.5133
Receiving the PDE-2061 and
PDE-2058
• Tuition Rate and AIE are sent by mail around
June of each year.
• Request for Information Form must be filed
with LECS Comptroller’s Office if Tuition
Rate/AIE are misplaced. Reports will be faxed
or surface mailed (not available by email).
• For information purposes, all school
Elementary and Secondary Tuition Rates are
posted to the School Finance Website as an
excel file.This is not the certified form, it is an
FYI only.
Points to Remember
• Use care when completing the detailed
expenditure section of the AFR.
• Tuition Rates will NOT be revised once
certified.
• Verification procedures for Tuition Rate
and AIE on located on School Finance’s
website www.pde.state.pa.us/school_acct
• Federal Expenditures are NOT included in the
tuition rate calculation.
Restricted Indirect Cost
Schedule
• 2300 – only include the cost of the general
audit of the school; and, if recorded in 2310,
the salary of the business manager if they
also serve as the board secretary.
• 2500 – there is a formula to limit this number
• 2830 – only include non federal costs
• 2840 – only include non federal costs
• Unallowable costs will be deleted from the
schedule.
Is this proper Accounting?
• Netting down revenues and
expenditures
• Long term liability for rental
reimbursement. The Commonwealth
does not recognize this as a payable, so
you should not recognize this as a
receivable.
Common Errors
• Not accruing revenues when applicable.
• Recording expenditures in incorrect functions
or objects. Refer to the instructions on the
payment letters or the audit confirmation for
correct coding.
• Only recording the General fund on your fund
financial statements.
• Recording AG findings for
payments/deductions before these
transactions are processed by PDE.
More Common Errors
• Waiting until you have completed your
MD&A to submit your AFR
• Not sending in your required paperwork
• Sending in your data file with validation
errors
• Getting frustrated with your AFR
validations and not contacting the
School Finance Division for help
Issues We are Reviewing
• Alternative education – recording of
expenditures.
• GASB Statement #45 – new codes?
• Revised chapters of the Accounting
Manual
Questions
• Contact information:
Mary Kay Beer
phone: (717) 783-9001
email: [email protected]
LouAnn Caldarella
phone: (717) 783-9003
email: [email protected]
School Finance email: [email protected]
LECS Comptroller’s website:
www.pde.state.pa.us/school_acct