The Other Funds Funds 21, 41, 60, 72, 73, 80 & 90 WASBO Accounting Conference New Business Office...

transcript

The Other FundsFunds 21, 41, 60, 72, 73, 80 & 90

WASBO Accounting ConferenceNew Business Office Staff Track

Brian KahlDPI School Finance Auditor

Bob SoldnerSFS Team Director

March 2014

Agenda

• The Main Funds• The Other Funds– 21: Special Revenue Trust Fund– 41: Capital Expansion Fund– 60: Agency Fund– 72: Private Purpose Trust Fund– 73: Employee Benefit Trust Fund– 80: Community Service Fund– 90: Package & Cooperative Program

Fund"The Other Funds" - WASBO Acct Conference March 2014

The Main Funds

• General Fund• Special Education• Debt Service– Non-Referendum– Referendum

• Capital Projects• Food Service

F-10F-27

F-38F-39F-49F-50

"The Other Funds" - WASBO Acct Conference March 2014

The Other Funds

• Special Revenue Trust Fund• Capital Expansion Fund• Agency Fund• Private Purpose Trust Fund• Employee Benefit Trust• Community Service Fund• Package & Cooperative Program

Fund– Packaged Services (CESA)– Other Package & Coop Pgm

F-91F-99

Fund 21

• Account for trust funds that can be used for district operations

• Sources– Gifts– Donations from Private Parties

• Expended pursuant to donor specifications, if any

• May carry a fund balance

Fund 21

How to use this fund?• District or staff controlled

“activity” accounts• Fund raisers• Targeted donations• Tournaments or Competitions

Fund 21

• Permanent Fund– Should be used to report resources

that are legally restricted to the extent that only earnings and not principal, may be used for purposes that support the district’s programs

– Resources should benefit the government

– Need to keep the corpus intact"The Other Funds" - WASBO Acct Conference March 2014

Fund 21

District/Staff “activity” funds• Activity groups where staff

decides how to raise funds and how to appropriate them– Athletic Fundraisers– School Fundraiser (Example –

Field Trips)– Band Uniforms– School Musical

Fund 21

Why would you use Fund 21 instead of Fund 10?• Shared Cost (Deductible Receipt

if in Fund 10)• Carry balances from year to

year• Comply with donor wishes if

any restrictions placed on use of funds

Fund 21

Accounting Transactions• Ledger Accounts– Revenues– Expenditures

• Balance Sheet Accounts– Assets– Liabilities– Equity (Fund Balance)

Fund 21

More information:• When to Use Fund 21

http://sfs.dpi.wi.gov/files/sfs/doc/fund21.doc

• WIAA and Other Tournaments and Competitions

http://sfs.dpi.wi.gov/files/sfs/doc/tournaments_hosted.doc

Fund 60

Agency Fund• Used primarily to account for

assets held by the district on behalf of pupil organizations

• Parent organization funds may be accounted for here– May not be a separate 501(c)(3)

Fund 60

Agency Fund• Only balance sheet accounts

(assets & liabilities) are reported in Budget and Annual reports

But…• Records of receipts and

disbursements must be maintained locally and will be examined during audit

Fund 60

Pupil Organizations• Funds are held by the district for

the benefit of the student organizations– District has a fiduciary responsibility

• Students are the decision makers on how to raise money and how to spend it– Staff advisers only advise, do not

decide"The Other Funds" - WASBO Acct Conference March 2014

Fund 60

Pupil Organizations• Student Council• Class of 20XX• National Honor Society• Yearbook• Drama Club• Foreign Language Club• Other Clubs

Not Fund 60• Activities where staff make the

decisions are District Activities and accounted for elsewhere

• Examples:– Athletics– Musical– Band Uniforms– Field Trips– Shop Class– Sunshine Club / Coffee Fund*

• Should NOT appear anywhere on the district’s books. These are not district funds.

Fund 60

Accounting Transactions• Assets– 711000: Cash– 712000: Investments

• Liabilities– 814000: Due to Student

Organizations• Equity– None

Fund 60

Parent Organizations• District may establish agency funds for

parent organizations– Bank accounts in the name of the district– Same policies/procedures as for student

organizations

• Liability Acct 818000: Due to Parent Organizations

• Parent organizations may not use the district’s tax ID number

• Parent organizations may not be a separate 501(c)(3)"The Other Funds" - WASBO Acct Conference March 2014

Fund 60

More information:

• Agency Fund Guidelines documenthttp://sfs.dpi.wi.gov/files/sfs/doc/stud_acct.doc

• Audit Program for Pupil Activity Accounts http://sfs.dpi.wi.gov/files/sfs/pdf/student_activity_funds.pdf

Fund 41

Capital Expansion Fund• Projects financed with a tax levy per

Wis. Stats. 120.10(10m)– Levy is within the Revenue Limit

• Restricted to capital expenditures related to buildings and sites– Not equipment– Not furnishings

• Requires approval at Annual Meeting"The Other Funds" - WASBO Acct Conference March 2014

Fund 41

Eligible expenditures defined:• For acquiring and remodeling

buildings and sites, and• Maintenance or repair

expenditures that• Extend or enhance the service

life of building, building components, sites and site components"The Other Funds" - WASBO Acct Conference March 2014

Fund 41

Why use Fund 41?• Allows for depreciation of

expenses over length of time• In year of spending - Reduces

shared costs in aid formula– Can reduce the impact of negative

tertiary aid for districts in that position

– Smoothes out aid for positively aided districts.

Fund 41

Disadvantage• Restricts use of limited

revenues to qualifying capital expansion projects– Cannot be redirected to use for

general operations or routine maintenance

• Creates additional accounting / reporting requirements

Yr Levy Expend. Amortized Expenditures Total Amort.

1 $105,000 $100,000 $100,000 $100,0002 $105,000 $100,000 $50,000 $50,0003 $105,000 $100,000 $50,000 $33,333 $83,3334 $105,000 $100,000 $33,333 $25,000 $58,3335 $105,000 $100,000 $33,334 $25,000 $20,000 $78,3336 $0 $25,000 $25,000 $20,000 $5,000 $50,0007 $0 $0 $25,000 $20,000 $5,000 $50,0008 $0 $0 $20,000 $5,000 $25,0009 $0 $0 $20,000 $5,000 $25,000

10 $0 $0 $5,000 $5,000T $525,000 $525,000 $100,000 $100,000 $100,000 $100,000 $100,000 $25,000 $525,000

Fund 41Amortizing Expenditures Over Time

Fund 41A Capital Expansion document and PowerPoint can be found on the finance team page in the WUFAR link: http://sfs.dpi.wi.gov/sfs_wufar

Click on: Accounting Issues and Coding Examples

or go directly to:http://sfs.dpi.wi.gov/files/sfs/doc/cap_expans_publish.doc

http://sfs.dpi.wi.gov/files/sfs/ppt/cap_expans_publish.ppt

Fund 72

Private Purpose Trust Fund• Account for gifts and donations

specified for the benefit of private individuals and organizations not under the control of the school board– Board acts as Trustee of account– Example: Scholarship Fund– Expenditures are made pursuant to

donor specifications"The Other Funds" - WASBO Acct Conference March 2014

Fund 73

Employee Benefit Trust Fund• Used to account for resources held

in trust for formally established defined benefit plans, defined contribution plans, or employee benefit plans

• Must be legally established in accordance with state statutes, federal law, and IRS requirements

• Legally irrevocable trust

Fund 73

Employee Benefit Trust Fund• Created as a mechanism for

districts to fund post-employment benefit obligations

• Districts not required to use this– May opt to “pay as you go,” however,

that does not help reduce the long-term liability

• Requires actuarial study to determine funding levels

Fund 73

Employee Benefit Trust Fund• District makes payments to the

trust from the governmental funds (Funds 10, 27, 50, and 80) to fund annual obligations.

• Fund 73 pays the retiree benefits

Fund 73

Why use Fund 73?• To reduce the district’s long-

term unfunded obligations.

• Costs to Special Education Fund are aidable up to the ARC if one of the three criteria are met.

Fund 73

More information:• Employee Benefit Trust Fund webpage

http://sfs.dpi.wi.gov/sfs_emp_benefit_trust_fund

• Employee Benefit Fund Requirements webpagehttp://sfs.dpi.wi.gov/files/sfs/doc/EBFRequirements.doc

• Fund 73 OPEB Transaction Accounting Samples

http://sfs.dpi.wi.gov/files/sfs/Accounts%20to%20use%20for%20Fund%2073%20trust.doc

Fund 80

• 2013 Wisconsin Acts 20 & 46– District Levy Authority is Limited in

2013-14 & 2014-15– Hold a Referendum to Exceed Levy

Limit – Reporting Requirements• District’s Website• District Complete DPI Fund 80 Survey• DPI Report to Legislature (12/1/14)

Fund 80

Community Service Fund• Used to account for all activities

that have the primary function of serving the community (not public school programs)

• District may adopt a separate levy, outside revenue limits, for this Fund– Does not impact aid calculation

Fund 80

Statutory References• School Board authority to

establish– Wis. Stats. 120.13(19)

• Budget reporting requirements– Wis. Stats. 65.90

• Adoption of a separate levy– Wis. Stats. 120.10(8)– Wis. Stats. 120.12(3)

Fund 80

Community Service Fund• Access to activities cannot be

limited to pupils enrolled in the district’s K-12 education programs

• Excluded are any academic subjects and extra-curricular activities available only to pupils enrolled in the district

Fund 80

Community Service Fund• Examples:– Community softball leagues– Elderly nutrition programs– Non-Special Educ pre-school– Day care services– Evening community swimming

and pool operations– Adult education

Fund 80

Allowable Expenditures• Non-instructional – May include cost allocations for

salaries, benefits, purchased services, etc.

– Directly related to the activity included in Fund 80

Fund 80

Questions to Ask• Is the program outside the usual

instructional program?• Is the program available to

everyone in the community (age appropriate)?

• Is the program fee supported?If “YES,” then the program may be appropriately included in the Community Service Fund

Fund 80

Do NOT recommend including• District/Building administration• Facilities used by the instructional

or extra-curricular program• Welfare/safety expenditures

related to K-12 instructional or extra-curricular program– Police Liaison Officers– Crossing Guards

Fund 80

Pro-rating of other costs• We do not recommend costing

these costs in Fund 80 UNLESS they are directly associated and fully documented:– Custodial costs– Security costs– Utility costs

Fund 80Key Question to Ask

• If the program in Fund 80 ended, would some costs shift to Fund 10?– Custodial costs: If Fund 80 program

ended, would there be a reduction in custodial hours?• If YES, then appropriate for Fund 80.

– Utilities: Would utilities be reduced if the program ended, or shifted to Fund 10?• If REDUCED, then appropriate for Fund 80.

Fund 80

Construction and Debt Service• Recommend not charging

construction or related debt service costs for education facilities even if it may be used by the community– Exception: facility is not used for

instructional purposes at all, only for community recreation.

Fund 80

Infrastructure Costs• Recommend that construction

and/or infrastructure maintenance costs not be accounted for in Community Service Fund even if used at times by the community

• Examples– Sidewalks– Parking Lots

Fund 80

More information:• Community Service Fund

Information webpagehttp://sfs.dpi.wi.gov/sfs_comm_serv

• Community Service Fund presentation

http://sfs.dpi.wi.gov/files/sfs/ppt/comm_ser_fnd.ppt

Fund 90

Package and Cooperative Program Fund• Used to account for

expenditures made by a host district for programs and services offered to other districts– Fund 91: Through a CESA– Fund 99: Others

Fund 91

Host District• CESA acts as fiscal agent for the

districts in the cooperative– Other districts pay CESA their

share– Host district pays CESA for its

share• Expenditure to F-10

– CESA reimburses host district for all program expenditures

– No fund balance allowed"The Other Funds" - WASBO Acct Conference March 2014

Fund 99Fiscal Agent District• District that acts as the fiscal agent

for the districts in the cooperative– Other districts pay host district

their share– Host district transfers from F-10

its share of costs• Revenue to F-99• Expenditure to F-10

– Pays all expenditures for program– No fund balance allowed

Fund 99

Examples of Cooperative Services• Hockey Co-op• Swim Team Co-op• Transportation Services• Business Education Program

• REQUIRES completion of a “66:30 Agreement”

Wis. Stats. 66.0301"The Other Funds" - WASBO Acct Conference March 2014

Fund 90

Package & Cooperative Services• NOTE: Shared Special

Education services are recorded in F-27 not in F-90.

Fund 90

More information:• Cooperative Service

Agreement 66.0301 webpagehttp://sfs.dpi.wi.gov/sfs_coop_agree

THANK YOU!

Questions?

Contact Information Bruce Anderson, Consultant 608-267-9707 Carey Bradley, Consultant 608-267-3752 Karen Kucharz, Consultant 608-266-3464 Brian Kahl, Auditor 608-266-3862 Gene Fornecker, Auditor 608-267-7882 Michele Gundrum, Auditor 608-267-9218 Erin Fath, Asst Director 608-267-9209 Bob Soldner, Director 608-266-6968

The Other Funds Funds 21, 41, 60, 72, 73, 80 & 90 WASBO Accounting Conference New Business Office...

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