Transcript Daniel Lunghofer, MPA Mike Dooley, CSBO Ramona Garner   May 3, 2013  The Accounting Manual is published cooperatively by OSPI and SAO.  The School.

Daniel Lunghofer, MPA
Mike Dooley, CSBO
Ramona Garner


May 3, 2013
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 The Accounting Manual is published cooperatively by OSPI and
SAO.
 The School District Accounting Advisory Committee (SDAAC)
makes recommendations for updates to the manual in their
role of advising on accounting, budgeting, financial reporting,
and related matters.
 SDAAC meetings are scheduled now through December 2013
for the 2014–2015 Accounting Manual updates.
 The SDAAC web page:
o http://www.k12.wa.us/safs/PUB/COM/SDAAC.asp.
o Has the complete description of changes to the 2013–2014
manual.
o Has meeting agendas, materials, list of committee
members, etc.
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 Chapter
1 – Principles of Accounting
o Added a discussion about fund balance classifications.
o Clarified that for a Commitment to take place, there must
be a formal action of the school board.
o Can be either board policy or a separate resolution; must
be disclosed in Notes for each Commitment.
o GASB Update: A resolution for a Commitment must be
separate from the resolution fixing the budget.
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 Chapter
3 – Accounting Guidelines
o Updated section on short-term and long-term
obligations.
• If you issue a RAN for capital purposes, you must report the
entire balance as a liability in the fund receiving the proceeds.
o Added clarifications from WACs about interfund loans.
• Not allowed from ASB Fund, DSF, TVF.
• Not allowed to ASB Fund.
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 Chapter
4 – General Ledger Accounts
o Added clarifying language in GLs 230 and 240 for
o
o
o
o
districts who maintain a separate payroll account.
Opened GL 250 in GF, CPF, and TVF for LOCAL program
proceeds.
Opened GL 819 in TVF.
Opened GL 830 in DSF.
Changed GL 862 to Committed.
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 Chapter
5 – Revenue Accounts
o Deleted 4166 Student Achievement.
o Opened the following in the TVF:
• 4100 Special Purpose—Unassigned.
• 4300 Other State Agencies—Unassigned.
• 5200 General Purpose Direct Federal Grants—Unassigned.
• 6100 Special Purpose—OSPI Unassigned.
• 6200 Direct Special Purpose Grants.
• 6300 Federal Grants Through Other Entities—Unassigned.
o Opened Revenue 8521 Educational Service Districts—
Special Education.
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 Chapter
6 – Expenditure Accounts
o Deleted Program 66 Student Achievement.
o Opened Activity 28 Extracurricular in:
• Program 52 Other Title Grants Under ESEA—Federal.
• Program 69 Compensatory—Other.
o Opened Object 8 Travel in Activities 62, 63, and 64 in
Program 45 Skills Center—Basic—State.
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 Chapter
7 Journal Entries
o Added sample entry for accrual of deductible revenue
recovery.
o Deleted Student Achievement entries.
o Expanded LOCAL program entries.
o Clarified accounts to be used when receipting Medicaid
Reimbursement from the Health Care Authority.
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 Chapter
8 – Financial Reporting
o Changed Schedule of Long-Term Debt to Schedule of
Long-Term Liabilities.
o Added a schedule for each fund.
o Added a column for “Amount Due Within One Year.”
 Chapter
9 – Information Unique to Each Fund
o Added information about transfer of trust funds.
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 Chapter
10 – Grant Management
o This chapter was completely re-written.
o A number of topics in the chapter were covered in this
morning’s Grant Management 101 Workshop.
o Do four things:
•
•
•
•
Read the chapter.
Know the rules.
Follow the rules.
Keep your district out of trouble.
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 Appendix
B – Notes to the Financial Statements
o The Notes have moved (will be moving) to the
Administrative, Budgeting, and Financial Reporting
Handbook (ABFR).
o Still required to be completed by school districts.
o Use the most recent version of Notes available when
you prepare them.
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 Appendix
C – GASB Statements
o Included a discussion of fund balance reporting under
o
o
o
o
GASB 54.
ASB: Restricted for Fund Purposes (GL 819).
DSF: Restricted for Debt Service (GL 830) except forest
revenue-based net assets.
CPF: Depends on the source of money. Levy money
reported in Committed Fund Balance.
TVF: Restricted for Fund Purposes (GL 819).
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Michael J. (Mike) Dooley
CSBO, WMS
Supervisor
School District and ESD Budgeting
[email protected]
(360) 725-6305 voice
(360) 664-3631 TTY
(360) 664-3683 FAX
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
New Items:
o Closed in the GF and CPF:
• Revenue Account 4166—Student Achievement.
o Added in the TVF:
• Revenue Account 4100 Special Purpose—Unassigned.
• Revenue Account 4300 Other State Agencies—Unassigned.
• Revenue Account 5200 General Purposes Direct Federal
Grants—Unassigned.
• Revenue Account 6100 Special Purpose—OSPI Unassigned.
• Revenue Account 6200 Direct Special Purpose Grants.
• Revenue Account 6300 Federal Grants Through Other
Entities—Unassigned.
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
New Items:
o Program 66 is closed.
o In Program 45, within Activities 62, 63, and 64
• Object 8 is open.
o In Programs 52 and 69, Activity 28 is open and
• Objects 0, 2, 3, 4, 5, 7, 8, and 9 with all
authorized duty codes are open.
o In Program 99, Activity 65 is open and
• Objects 0, 5, and 7 are open.
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 New
Items:
o Added Revenue Accounts “6140 Impact
Aid—Construction” and “6340 Impact
Aid—Construction” in all columns.
o Added Revenue Account “5600 Qualified
Bond Interest Credit—Federal” in all
columns.
o Added GL 819 Restricted to Fund
Purposes in TVF.
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 New
Items:
o Updated Budget Information Edit 1.136 to perform as follows:
There are expenditures in
Program 45 or Program 46, but
district does not have Skills
Center.
Amount 1 = Mask
45XXX or Mask
46XXX
Applies to any
district other than
those listed in edit
1.136
Valid in F195 and F200
o Updated Budget Information Edit 1.137 to perform as follows:
There are expenditures in
Program 45 or Program 46, but
district does not have Skills
Center.
Amount 1 = Mask
45XXX or Mask
46XXX
Applies to any
district other than
those listed in edit
1.136
Valid in F195 and F200
o Added new Budget Information Edit 3.903 to perform as follows:
On page DS1, Column 3, Line B,
Total Expenditures are greater
than zero. District should show
outstanding bonds on page DS4.
Amount 1 = Item No.
532
(if greater than zero)
Amount 2 = Item
No. 585
(if zero)
Valid in F195
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 Budgeted
o
o
o
o
Beginning Fund Balance Review:
OSPI will review each school district’s budgeted
beginning fund balance once the F-196 information
is received.
The budgeted ending fund balance will be
recalculated based upon the actual ending fund
balance from the F-196.
If the result is a negative fund balance, your school
district can expect a request from OSPI to revise its
budget.
Your school board will have 30 days of receiving
notice to submit a revised budget to OSPI.
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 Budgeting
Receivables:
o If your school district is unable to submit a budget
extension (or budget for that matter) when revenues
and fund balance do not exceed expenditures, it must
request in writing to include receivables, collectible in
future periods, to balance the budget or budget
extension.
o When a school district budgets receivables, OSPI
places it under binding conditions which is intended to
have it recover from its deficit budget situation and
move to a stable financial position.
o This usually places your ESD in an oversight position of
your school district’s financial operations.
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 Budget
Extension Reminders:
o We know all of you are busy preparing your new
year budgets, but don't forget any remaining current
year budget extensions. August is the final month to
file your F-200 budget extensions with OSPI.
Depending on when you submitted your current year
F-200 for approval and when you printed your new
year F-195 budget document, you may need to
reprint your new year budget to allow your current
year budget extension to be accurately displayed in
the middle column of your new year F-195.
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
Budget Extension Reminders:
o Review budget monthly to determine necessity of an extension .
• Must complete a budget extension prior to incurring expenditures
in excess of the total appropriations as required by RCW
28A.505.150.
• For 1st class school districts, adopted and filed prior to
incurring expenditures that exceed the appropriation in each
fund.
• For 2nd class school districts, adopted and approved by both
the ESD and OSPI prior to incurring expenditures that exceed
the appropriation in each fund.
• The ESD and OSPI will adjust budget extensions that do not
meet this requirement.
• WAC 392-138-110 requires that the Associated Student Body
initially review revisions to the Associated Student Body (ASB)
budget. Therefore, an extension of the ASB Fund budget should
occur prior to the closing of school to secure the necessary
student involvement.
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 Cash File Reminders:
o F-197 application in EDS is available to school districts for
(recommended) monthly reconciliation to your county
treasurers’ report.
o F-197 Reconciliation Excel template is in Chapter 5 of the
Administrative, Budgeting, and Financial Reporting (ABFR)
Handbook.
o Amended WAC 392-123-132 is effective May 6, 2012.
• The rationale behind replacing the phrase “ending net cash
and investments, revenues and expenditures” with the
more generalized word “amounts” is that the proposed
language allows districts to reconcile in a more appropriate
way and makes sure that there is agreement between the
county treasurers’ records and the school districts’ records.
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Ramona Garner
Supervisor, School District/ESD Financial Reporting
(360) 725-6304
[email protected]
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http://apps.leg.wa.gov/WAC/default.aspx?cite=392-117
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Notice is hereby given to school districts and ESDs, in accordance with WAC 392-117035, that failure to adhere to the due dates below could result in a delay of
apportionment payments. The final date for filing or forwarding will be considered as
having been met if the postmark or other evidence indicates shipment prior to the due
date or the next workday if the due date falls on a weekend.
Final Action Date
Action
October 25
School Districts - Final date for submission of completed F-196 data from
the school district to the local ESD. The data will be submitted electronically
and/or on an F-196 manual form. Districts not able to submit by the
October 25 due date may request a waiver by email or written notice to the
ESD.
November 1
ESDs - Final date for the ESD to review and forward the certification page
back to the school district for signature.
November 8
School Districts - The signed certification page is due from the school
district to the ESD.
November 15
ESDs - Final date the signed certification page by the ESD is due at OSPI,
School Financial Services.
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Please make a note of these dates, it is not too early to start gathering
the needed data and balancing system items for year-end closing.
Starting now on this process will make meeting the listed deadline
dates easier for you.
In accordance with WAC 392-117-035, districts and ESDs that fail to
adhere to the due dates could have a delay of apportionment
payments. The final date for filing or forwarding will be considered as
having been met if the postmark or other evidence indicates shipment
prior to the due date or the next workday if the due date falls on a
weekend.
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 The F-196 Process is completed in the EDS platform.
 https://eds.ospi.k12.wa.us/login.aspx
 If you have not accessed the EDS platform, contact your ESD for
assistance.
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The SAFS applications have been developed to be viewed with Microsoft’s
Internet Explorer 6.0 or higher. Results may be unpredictable using other
browsers.
To help ensure your browser refreshes the application pages correctly, set
the browsing option as follows in Internet Explorer: go to Tools -> Internet
Options -> General Tab -> Browsing History -> Settings. Under the “Check
for newer versions of stored pages” heading, select ‘Every time I visit the
website.’
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 There are numerous formatting changes to the F-196 this year, but not
too many accounting changes.
 Bulletin No. 015-12 dated March 28, 2012, describes the changes in
more depth.
o The following revenue account has been removed:
• Revenue Account 4134—Middle School CTE.
o The following items have been added:
• Revenue Account 8200—Private Foundations.
• GL 819—Restricted for Fund Purposes in ASB Fund.
• GL 825—Restricted for Skills Centers in GF and CPF.
• GL 828—Restricted for Carryover of Food Service Revenue
•
in GF.
• GL 830—Restricted for Debt Service was opened in DSF.
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 OSPI website link:
o http://www.k12.wa.us
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 Districts are encouraged to access these templates to run the MOE
tests for mid-year and budget purposes and the 2012–13 recovery and
carryover information.
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 There are no changes to the Certification Page. Districts are required
to hand enter the number of days school was operated.
 Districts that have a waiver from Washington State Board of Education
will enter the number of days school was operated. Include a copy of
the waiver letter with the signed Certification Page.
 Verify that the Ending Total Fund Balance on the Certification Page is
the same as the Total Fund Balance on the Balance Sheet and the
Ending Total Fund Balance on the Statement of Revenues,
Expenditures, and Changes in Fund Balance.
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 As stated in the Addendum to Bulletin No. 081-11, dated January
12, 2012, Attachment B, districts that coded staff under duty
code suffix “4,” for the purposes of recording the costs of
innovative activities included in supplemental contracts, will
submit a brief description of these innovative activities with the
district’s F-196.
 On The Data Requirements for Supplemental Reports, item D
requires an entry. Although there has not been any “cost of
living” increases for several years, under RCW 28A.400.205
districts must certify either “yes” or “no” that it has spent funds
provided for cost-of-living increases on salaries and salary-related
benefits.
 Districts that receive the Medicaid reimbursement should use
Revenue code 6321 because the Medicaid reimbursement is
coming from DSHS, not OSPI.
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 There are no changes to the manually entered distorting
items such as election expenses, flow-through grants,
alterations/renovations, and fines/penalties. This data is
used in the Federal Restricted and Unrestricted Indirect
Rate.
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 There are no changes to the manually entered Indirect Expenditures.
The district should enter audit costs, legal costs, public relations
expenditures, termination leave for federally supported staff,
information system expenditures, pupil management and safety
costs, and space and occupancy costs, if a cost plan has been
established.
 Remember that legal costs are very restrictive. Only enter costs
associated with the interpretation of laws, regulations, or board
policy.
 Also remember that no student record costs can be entered for
information systems. Only enter costs associated with fiscal
systems (i.e., WSIPC fees, districtwide IT support).
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 There is help for determining what goes into the Indirect
Rates. Information regarding Restricted and Unrestricted
Indirect Rates can be found on the OSPI website at:
o http://www.k12.wa.us/safs/FinancialResources.asp
o Indirect Cost Rates Federal Indirect Rate Frequently Asked
Questions.
o http://www.k12.wa.us/safs/INS/ACC/1314/am.asp
o Chapter 10 of the Accounting Manual – Grants Management.
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 Information can also be found on the Office of Management and
Budget (OMB) website. OMB publishes a number of circulars
pertaining to various aspects of grants and federal awards.
OMB Circular A-87, Cost Principles for State, Local, and Indian
Tribal Governments, outlines the guidelines for charging costs to
federal grants, including direct costs and indirect costs.
http://www.whitehouse.gov/omb/circulars_a087_2004#c
 The 5 year Restricted Indirect Costs Rates have been updated
and posted.
 Updates to the Info edits will be made for the Preliminary
Special Education Maintenance of Effort Report. Districts
should note that passing the preliminary test does not
necessarily mean that a district has passed Maintenance of
Effort for Special Education. Final tests are done following the
F-196 process.
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 The F-196 contains a preliminary MOE test for Special Ed.
 This is a basic version of the actual test.
 Districts need only pass one of the four tests to pass MOE.
o State and Local, in aggregate.
o State and Local, per pupil.
o Local, in aggregate.
o Local, per pupil.
 If a district relies on a Local resources test, OSPI must do
a lookback to the last year a district relied on a Local
resources test, not just the previous year.
 If you pass MOE on a Local test on the F-196, be aware
that OSPI must do this lookback.
 The F-196 will include an info edit about this lookback
notice for districts who rely on a Local resources test.
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 After your ESD approves your F-196, and you feel that your
financial statements are correct, you can proceed with your yearend close. Any review of the district’s F-196 by OSPI does not
affect the district’s year-end close process.
 If your district requires that an F-196 revision be made, please
contact Ramona Garner via email at: ([email protected])
to request an MS Word document. Upon receipt of your email, I
will send the district’s F-196 and instructions for making
revisions. Don’t forget to cc your ESD when making a revision
request.
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 Questions and comments are always welcome and appreciated.
Whenever possible, emailing your question is beneficial in
assuring that OSPI understands the question and allows a “paper
trail” for OSPI and the district if the question should arise again.
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