Transcript PUBLIC SCHOOL FINANCE New Superintendents September 16, 2011 Leanne Emm Assistant Commissioner 303-866-6202 [email protected] Agenda • Financial Accreditation • Audit Compliance • Budget Policies & Procedures • Financial Transparency • Economic.

PUBLIC SCHOOL FINANCE
New Superintendents
September 16, 2011
Leanne Emm
Assistant Commissioner
303-866-6202
[email protected]
Agenda
• Financial Accreditation
• Audit Compliance
• Budget Policies & Procedures
• Financial Transparency
• Economic Forecast
• Key Staff Contacts
• Questions
Financial
Accreditation
Accreditation of school districts and
institute – contracts – rules
22-11-206 C.R.S.
• Accreditation Report
– Financial compliance - Budgeting, Accounting
and Reporting (Articles 44 and 45) 22-11-206
(4)(a)(I)&(II) C.R.S.
– Submitted with Annual Financial Report (Audit)
– Handout
Removal of Accreditation –
recommendations – review – appeal - rules
22-11-209 C.R.S.
• Loss of Accreditation:
– Have 90 days from receipt of notice to remedy
noncompliance for failure to comply with
provisions of Article 44 or 45 concerning
accounting and financial reporting.
– Could possibly lead to state review panel
evaluation.
Article 1 of Title 29, C.R.S.
Part 6
Audit - Compliance
Audits – required.
29-1-603 C.R.S.
• Requirement that auditors ensure the district
or school is complying with the provisions of
section 22-44-204 (3), C.R.S.
– use of the financial policies and procedures
handbook
• Anticipate Federal requirement for
individual charter schools to issue
separate independent financial audit
– Fiscal year ending June 30, 2012
Audits – required.
29-1-603 C.R.S.
• The audit report shall contain a fiscal year
report of receipts and expenditures of each
“fund” with designated program reports as
required by the FPP Handbook.
– This means all financial activities as those
activities are defined by “generally accepted
accounting principles” for governments.
Submission of reports
29-1-606 C.R.S.
• Audit to be completed and submitted to
school board by November 30
– Authorizers may require charters to submit earlier
in order to incorporate into district audits
• Audits due to the state auditor and CDE within
30 days after the audit report is received
(December 30th).
Submission of reports
29-1-606 C.R.S.
• Written requests for extensions may be
requested through the state auditor’s office
if the audit report cannot be completed and
filed by December 30th
• State auditor may authorize an extension,
not to exceed 60 days (February 28th).
Audit Submission
• In an extension has been granted consequences for audits submitted
after the February 28th deadline:
 Financial Accreditation watch
 Withholding of property taxes
Why so Stringent?
• The Department is required to
submit consolidated state financial
data to Federal Government
 If deadlines missed
 Withhold Federal Funds to the State which then
must be withheld from districts
Article 44 of Title 22, C.R.S.
Part 1
Budget Policies and
Procedures
Budget and appropriation – required.
22-44-103 C.R.S
•BOE must:
–Adopt Budget and appropriation via
resolution for each year
–Prior to the beginning of the next
fiscal year (June 30).
Failure to adopt budget or appropriation
22-44-104 C.R.S.
If either the budget or
appropriation resolution is not
adopted prior to June 30, the
entity is held to 90% of prior
year’s adopted budget.
Budget – contents – mandatory
22-44-105 C.R.S.
– Describe the expenditure
– Show amount budgeted for current fiscal year
– Show the amount estimated to be expended for the
current fiscal year
– Show amount budgeted for ensuing fiscal year
– Summarize revenues by revenue source
– Summarize expenditures by function (program), fund
and object
ABC School District/Charter
General Fund Budget
Beginning Fund Balance
Revenue
Detailed Information
Total Available Resources
Expenditures
Detailed Information
Revenue Over (Under) Expenditures
Other Sources (Uses)
Transfers In or Transfers (Out)
Total Revenues & Other Sources Over (Under)
Expenditures & Other Uses
Ending Fund Balance
Reserve for TABOR
Designated for XXX
Unreserved
Prior Year
Actual
Current Year
Budget
Current Year
Estimated Actual
Next Year
Budget
Budget – contents – mandatory
22-44-105 C.R.S.
• Expenditures, interfund transfers, or
reserves, may not exceed available
revenues and beginning fund balance.
• May not budget a deficit!
• Ending fund balance must cover TABOR and
positive unreserved fund balance
Budget – contents – mandatory
22-44-105 C.R.S.
• If beginning fund balance planned to be
used, a resolution must be adopted by
the board authorizing the use.
• Amount of beginning fund balance to be used
• Purpose for spending the funds
• State the plan to ensure the use of fund balance
does not lead to ongoing deficit
Appropriation resolution - required
22-44-107 C.R.S.
• The appropriation resolution is the
authority to spend funds and must reflect
the adopted budget
– May incorporate the budget adoption and
appropriation resolution into same document
– May also incorporate the “use of fund balance”
resolution
– End of year expenditures may not exceed
appropriation – audit finding!
Preparation of budget
22-44-108 C.R.S.
• A proposed budget must be
submitted to the board by June 1
• Within 10 days of submittal, notice
of budget must be published
• Public hearing must be held
Budget – consideration - adoption
22-44-110 C.R.S.
• The board may review and change the budget
at any time prior to January 31st.
• This allows for the budget to reflect more
current funding data:
– Actual student counts
– District assessed valuation
– Total Program/Per Pupil Revenue
Budget – consideration - adoption
22-44-110 C.R.S.
•Supplemental Appropriations
–Funds that become available for specific purpose
after the budget is adopted or after the budget has
been changed
–Grants, bond or mill levy override elections, etc
–Must adopt supplemental appropriation in order to
spend the funds – prior to end of year!
Public School
Financial
Transparency Act
Financial Transparency Act
Article 44 of Title 22, C.R.S. Part 3
With the passage of HB10-1036, The
General Assembly enacted the "Public
School Financial Transparency Act",
which directs local education providers to
post financial information on-line, in a
downloadable format, for free public
access.
Local Education Provider
•
•
•
•
•
School District
Board of Cooperative Services
State Charter School Institute
District Charter School
Institute Charter School
Compliance Timeline
Commencing July 1, 2010
• FY2009-10 and FY2010-11 Annual Budgets
– District Budget Document
– Uniform Budget Summary Sheet
• FY2009-10 Financial Audit
• Quarterly Financial Statements
• Salary Schedules or Policies
Compliance Timeline
Additionally commencing July 1, 2011
• Accounts Payable Check Registers
• Credit, Debit and Purchase Card Statements
Compliance Timeline
Additionally commencing July 1, 2012
• Investment Performance Reports
Compliance Timeline
•Update information within 60
days
–Completion of report, statements,
applicable information
–For example
•Budget Posted by August 30 if adopted June 30
Financial Transparency Act
22-44-304 (2) C.R.S.
•Not required to post
–personal information relating to payroll
–other information that is confidential or
protected from public disclosure pursuant to
state or federal law
•Examples: HIPPA; IDEA; Homeless
Financial Transparency Act
The current and prior two budget
years’ financial information must
be maintained on-line until the
end of the current budget year.
Financial Transparency Act
Make the page easy to find:
• It should be no more then 1-2 mouse
clicks from the homepage.
• If linking to district, go to specific site
and add verbiage about how public
can “drill to charter information”
Website Link
Where We Are Going
FY2012-13
State of Colorado
General Fund Revenue - $7.12 Billion
2011-2012
Other
3.4%
Excise Taxes
30.7%
Income Taxes
65.9%
Source: 2011/2012 Budget in Brief; Joint Budget Committee
State of Colorado
General Fund - $7.01 Billion
2011-2012
General
Government
0.7%
Other
3.5%
Human
Services/Health
Care
32.6%
Education (K-12)
40.4%
$2.83B
Higher Education
8.9%
Source: 2011/2012 Budget in Brief; Joint Budget Committee
Corrections/
Judicial
13.9%
Federal, State and Local Funding for Public Schools
2011-2012 $6.1 Billion
Categorical
Programs
$406.1M, 7%
Other Federal
Funds
$434.5M, 7%
School Finance
Act
$5,212.7B, 85%
Other State
Funds
$84.1M, 1%
FY2012-13 – June Forecast
OSPB
Legislative
Council
Inflation Estimate
3.5%
2.6%
Potential Growth
in Total Program
$261 million
$207 million
Late February 2012 – actual inflation
State of Colorado
Total Program Funding
Gaps represent rescissions
in millions
$6,000.0
$5,000.0
$4,000.0
$3,000.0
$2,000.0
$1,000.0
$000.0
Fully Funded Total Program
Total Program Less Rescissions
/Legislative Actions
2008-09
Actual
2009-10
Actual
2010-11
Actual
2011-12
ESTIMATE
$5,354.8
$5,717.3
$5,822.3
$5,999.9
$5,347.3
$5,586.1
$5,439.9
$5,223.8
2012-13
PROJECTION
OSPB - 3.5%
Inflation
$6,248.5
FY2012-13
• Potential is high for further reductions
• Growth in students and caseloads continue
to pressure the General Fund
• State Education Fund balance diminishing
PSFU CONTACT INFORMATION
Wendy Chapin
[email protected]
303-866-6137
Transportation Unit Supervisor & BEST Capital
Construction
Mary Lynn Christel
[email protected]
303-866-6818
School Finance Formula, Funding Projections, State
Share Payments, Mill Levies/Elections/Property Taxes,
General Pupil Count Information
Terry Christensen
[email protected]
303-866-6847
Financial December ADE, Audit-ADE Review, Chart of
Accounts Assistance, Federal Reporting, Financial
Transparency, Educational Services for Juveniles
Awaiting Trial as Adults
Kirk Weber
[email protected]
303-866-6610
Audit Unit Supervisor, Technical Assistance &
Compliance Monitoring, Financial Policies and
Procedures Handbook, Chart of Accounts Assistance
Adam Williams
[email protected]
303-866-6843
Financial December ADE, Audit-ADE Review, Chart of
Accounts Assistance, Indirect Cost Rates, CDE-40
Transportation Reimbursement, State Share Payments
Resources
• Colorado Department of Education –
www.cde.state.co.us
• Colorado Legislative Council – www.colorado.gov/lcs
• Colorado Associate of School Executives –
www.co-case.org
• Colorado Association of School Boards –
www.casb.org
• Colorado School Finance Project – www.cosfp.org
• Great Education Colorado - www.greateducation.org
• Children’s Voices - www.childrens-voices.org
• The Bell Policy Center – www.thebell.org
Questions?