EDCOE
Tuolumne County Superintendent of Schools
YEAR END CLOSE REFERENCE BOOK
YEAR END CLOSE REFERENCE BOOK TCSOS
Table of Contents
1. Checklist Sample Year-End Checklist with Target Dates
2. Balance Sheet Accounts Cash Accounts Receivable Prepaid Expense Prior Year Items Accounts Payable – Current Liabilities Due To / Due From Unearned Revenue
3. GASB GASB 34 GASB 45 GASB 54 GASB 63 & 65 GASB 68
4. Indirect Costs 5. Local Control Funding Formula
Deferred Apportionments Final Year End Accrual Class Size Reduction Transportation Adult Education ROC/P Instructional Materials
6. Federal Programs Categoricals Special Education Federal Transferability Consolidation of NCLB funds for administration Rural Education Achievement Program
7. State Programs Flexibility Lottery Education Protection Account (EPA) Economic Impact Aid (EIA) Common Core Proposition 39
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Table of Contents
8. SACS Export from QCC Select Fiscal Year and SACS Process Selection Screens for Interims Selection Screens for Unaudited Actuals Upload Process
9. SACS Software Getting Started
Tips on Using the SACS Software
Suggested Data Processing Sequence
What’s New in the SACS Software
Form A
Form CEA
Form ICR
Form ASSET
Other Forms
Finishing
APPENDIX Special Education Pupil Counts Indirect Cost Rates Common Coding Errors Accounting
TCSOS YEAR END CLOSE REFERENCE BOOK
1 Checklist
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1-5 Calendars and Checklist
Year-End Checklist
Pre-Closing Target Date
Prior year items reconciled / cleared / posted June
9210 - Accounts Receivable
9510 - Accounts Payable
9330 - Prepaid Expenditures
9310 - Due From Other Funds
9610 - Due To Other Funds
9650 - Deferred Revenue
9793 – Audit Adjustments
Review Current year items
Opening balances agree with ending balances on prior year SACS forms
Cash – anticipate internal borrowing? (EC 42603) Check bank account balances to see if any monies should be moved and
deposited to the County Treasury (Cafeteria, etc.)
Revenues received properly classified
Revenues received on track with expectations
Review expenditures for program compliance
All object 6xxx’s and function 8500’s are capital outlay
Clean up coding errors such as incorrect object, function, etc
Invalid accounts?
- Finance Reports: SACS Account Listing, Report type 2 = invalid accounts
Assets added/removed from inventory
Physical inventory taken
Adjust stores to match physical count
Gather information that will be needed for close
Classroom Units (CUs) Full Time Equivalents (FTEs)
Gather other information if needed (no longer required for Form TRAN)
Pupils Transported (PTs)
Number of buses to transport pupils daily
Number of miles driven to/from school
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1-6 Calendars and Checklist
Year-End Checklist
Target Date Annual Attendance Reports July 8
Electronic attendance file Signed certification pages
Final Deposits COE June 26
Closing Entries Aug 8 Suspense accounts cleared as appropriate Prepaid expenditures recorded Book expenditure accruals All TPs, TVs, JEs approved
Transfers Aug 11
Allocate 3701/3702 costs Direct costs – inter-program, inter-fund
Field trips, copying, postage, NCLB admin costs, etc.
Intrafund in balance (5710)
Interfund in balance (5750) Direct support costs allocations (Special Ed)
Export from QCC, import into SACS
Use PCRAF, PCR, User Data Input/Review to help calc amounts Book Special Ed allocated direct support costs in QCC
Indirect costs
Intrafund in balance (7334, 7310, etc)
Interfund in balance (7350)
73xx net to zero at function & fund level
Expenditure and MOE review Aug 15 Re-export from QSS, import into SACS Clear special education factors on PCRAF Open, save, close PCR Review SEMOE, NCMOE, CEA,
Adjust GL as appropriate, re-import and re-check
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1-7 Calendars and Checklist
Year-End Checklist
Target Date Categorical Programs Aug 20 Book Revenue accruals – Lottery, etc Balance resources (Summary Report by Resource, GLD320)
CAT form – book receivables, deferred revenues
Contributions to restricted programs Set up new due to/from
Fund contributions (such as Cafeteria)
Balanced across funds (7600-7629/8910-8929)
Book Revenue Limit Accruals Aug 20 Review LCFF spreadsheet update from COE
Confirm ADA, unduplicated count Book LCFF accruals
State Aid (8011)
Transfers in lieu of property taxes to district charters
- TCSOS books in lieu transfers to TCSOS charter
Summary Aug 22 Financial Summary Review with Superintendent
Final Cash Aug 29 Final Cash Reconciliation received from TCSOS
Confirm cash s/s from TCSOS matches QSS and matches data exported from QSS to SACS software
Last chance to check all TV’s, TF’s, etc. are approved.
SACS Aug 29 SACS forms completed
Data processing sequence in user guide
Appendix A – which forms optional, source of data Government-wide Reporting
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1-8 Calendars and Checklist
Year-End Checklist
Final Steps
Target Date
Board presentation materials Sep 5 Budget to actual threshold; All BT’s done. Sep 5 Present to Board Sep 12 Export Official SACS DAT File to TCSOS Sep 15 Send additional documents to TCSOS (narrative, etc) Sep 15
TCSOS YEAR END CLOSE REFERENCE BOOK
2 Balance Sheet Accounts
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2-1 Balance Sheet Accounts
Cash
Revolving Cash 9130 – Revolving Cash
Be sure to reconcile and replenish this account. Review whether there are any deposits here that need
to be moved.
Cash in County Treasury 9110 – Cash in County Treasury
• TCSOS will send a preliminary June cash reconciliation spreadsheet mid-July (see Fiscal Close
Calendar for date)
• Review to see if there are any items that need to be addressed (e.g. deposit not posted,
need to move transaction to correct fund, etc.)
• TCSOS will send the final spreadsheet with cash reconciliation to the CBO (see Fiscal Close
Calendar for date – usually by the end of August)
• Caution – be sure to double check cash before you finalize Unaudited Actuals:
Cash Reconciliation Spreadsheet amount = QSS amount = Amount you are reporting in SACS software
Accounts Receivable
Amounts billed or earned but not yet received by the close of the fiscal year.
Accounts Receivable 9209 – Accounts Receivable Setup
Entries will automatically post here when you establish your receivables through the QSS Accounts
Receivable system
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2-2 Balance Sheet Accounts
Prepaid Expense
9330 - Prepaid Expense
Payments made in advance of the receipt and use of services.
STEP 1 Reverse (or adjust) any prior year closing entries.
Insurance premiums paid in the Prior Fiscal Year for the Current Fiscal Year of $1,500
The accrual entry in the Prior Fiscal Year was:
STEP 2 Establish Current Fiscal Year accrual.
Insurance premiums paid in the Current Fiscal Year for the Subsequent Fiscal Year of $2,000
Res Obj Goal Func
DR Prepaid Expense xxxx 9330 2,000
CR Insurance xxxx 5400 xxxx xxxx 2,000
Res Obj Goal Func
DR Prepaid Expense xxxx 9330 1,500
CR Insurance xxxx 5400 xxxx xxxx 1,500
The reversing entry in the Current Fiscal Year is:
Res Obj Goal Func
DR Insurance xxxx 5400 xxxx xxxx 1,500
CR Prepaid Expense xxxx 9330 1,500
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2-3 Balance Sheet Accounts
Prior Year Items
Prior year items should be reconciled, cleared and posted. The following accounts should have a -0-
balance before posting any entries for the current year close.
Accounts with separate “set-up” accounts Accounts Receivable and Accounts Payable have a separate “set-up” account to set up accruals for the
current year that is being closed (e.g. 9209 is AR setup account; 9509 is AP setup account). Before
posting any entries for the current year close, the amounts in the following accounts are balances for
accruals from the prior year.
9200 – Accounts Receivable from prior year
9500 – Accounts Payable from prior year
Other Accounts The following accounts do not have a separate “set-up” account. The beginning balances in these
accounts represent items from the prior year that need to be resolved before posting new items for the
current year close.
9310 – Due-From Other Funds
9330 - Prepaid Expenditures
9610 – Due-To Other Funds
9650 - Unearned Revenue
Helpful QSS reports – GLD115 Recap, GLD110 Detail
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2-4 Balance Sheet Accounts
Accounts Payable – Current Liabilities
Amounts due for services rendered and goods received on or before the close of the fiscal year.
Accounts Payable 9501 – Accounts Payable Setup
Entries will automatically post here when you establish your payables in QSS through Payables/Current
Liabilities
Liability Accounts Review liability accounts to see if any items are posted here that you need to record as an expense.
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2-5 Balance Sheet Accounts
Due To / Due From
Make sure that all revenues and expenditures are accounted for in the proper fund. If one fund owes
another fund at year-end and it is after the inter-fund transfer (TF) deadline (usually July 31 –
see Fiscal Close Calendar), establish a due to/due from account.
9310 - – Due-From Other Funds
Amount due from another district fund.
9610 - – Due-To Other Funds
Amount due to another district fund.
EC 42603 requires that prior fiscal year due to/due from accounts must be repaid in the current fiscal
year. Be sure to clear the prior year due to/due from amounts before establishing due to/due
from amounts for the current fiscal year.
STEP 1 Reverse any remaining prior year closing entries.
In the prior fiscal year a contribution was recorded from the General Fund to the Cafeteria Fund and a
due to/due from was established because the inter-fund transfer deadline had passed. The
due to/due from entry in the Prior Fiscal Year was:
Fd Obj DR CR
From General Fund to Cafeteria Fund 01 7616 10,000
Due To Other Funds 01 9610 10,000
Due From Other Funds 13 9310 10,000
To Cafeteria Fund from General Fund 13 8916 10,000
The reversing entry in the Current Fiscal Year is:
Fd Obj DR CR
Due To Other Funds 01 9610 10,000
Due From Other Funds 13 9310 10,000
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Balance Sheet Accounts
Due To / Due From
STEP 2 Establish the Current Fiscal Year closing entry. For example:
In the current fiscal year a contribution is needed from the General Fund to the Cafeteria Fund and the
inter-fund transfer deadline had passed. The due to/due from entry in the Current Fiscal Year
will be:
Fd Obj DR CR
From General Fund to Cafeteria Fund 01 7616 12,000
Due To Other Funds 01 9610 12,000
Due From Other Funds 13 9310 12,000
To Cafeteria Fund from General Fund 13 8916 12,000
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Balance Sheet Accounts
Unearned Revenue
9650 - Unearned Revenue
Revenue that has been received, but is unearned, as of June 30. Complete the FORM CAT to determine
amount of unearned revenue.
STEP 1 Reverse any remaining prior year closing entries. Remember to use the correct resource
numbers when reversing the prior year’s closing entries.
Title I A revenues exceeded expenditures on Form CAT for the Prior Fiscal Year so excess revenue was
deferred to the Current Fiscal Year. The deferred revenue entry in the Prior Fiscal Year was:
Res Obj
DR Other State Apportionment 3010 8290 3,000
CR Deferred Revenue 3010 9650 3,000
The reversing entry in the Current Fiscal Year is:
Res Obj
DR Deferred Revenue 3010 9650 3,000
CR Other State Apportionment 3010 8290 3,000
STEP 2 Establish the Current Fiscal Year closing entry. For example:
Title I A revenues exceeded expenditures on Form CAT for the Current Fiscal Year so excess revenue
must be deferred to the Subsequent Fiscal Year.
Res Obj
DR Other State Apportionment 3010 8590 3,500
CR Deferred Revenue 3010 9650 3,500
GASB
TCSOS YEAR END CLOSE REFERENCE BOOK
3 GASB
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3-13
GASB
GASB 45 - Other Post Employment Benefits (OPEB)
GASB 45 In June 2004, the Governmental Accounting Standards Board issued Statement No. 45 (GASB 45) which
establishes standards for governmental employers to measure and report their costs and obligation
relating to postemployment benefits other than pensions. These costs are called Other Post-
Employment Benefits (OPEB). Examples include health benefits, life insurance, legal services, or other
benefits. OPEB does not include pension benefits or other non-health care postemployment benefits
that are administered through a pension plan, or cash payments to retirees that may be used at the
retiree’s option to pay employee health care premiums. It does not include termination benefits such as
retirement incentives unless the incentives involve changes to existing OPEB obligations. Generally,
retirement incentives are considered inducements to terminate employment rather than compensation
for employment.
Frequency of Valuation
Total Plan Membership Required Frequency
200 or more Every two years
Fewer than 200 (including plans of fewer than 100 using the alternative measurement method)
Every three years
A new valuation is required sooner if significant changes affect the results of the valuation. Significant
changes include:
employer enhancing or curtailing benefits
Changes in covered population
CDE Letter CDE issued a letter on February 26, 2007 that discusses key provisions of GASB 45 plus implications for
administration of state and federal categorical programs and changes to accounting for OPEB in the
standardized account code structure - available at www.cde.ca.gov/fg/ac/co. Most questions are
answered in the letter and attachments.
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3-14
GASB
GASB 45 - OPEB
Accounting for OPEB Effective in fiscal year 2007-08 CDE redefined and established new object codes to account for OPEB
costs.
3701/3702 – OPEB, Allocated Costs for retirees and other former employees; the Unfunded Actuarial Accrued Liability (UAAL)
for active employees may be included.
3751/3752 - OPEB, Active employees Normal costs for active employees; the UAAL for active employees may be included.
GASB 45 Key Concepts
Present Value of Projected Benefits (PVPB) This is the total projected costs to finance benefits payable in the future based upon a members’ past
service through the valuation date, and their future service.
Annual Required Contribution (ARC) This is the level of employer contribution required on a sustained ongoing basis to systematically fund
the Normal Cost and the UAAL. It is the amount needed to pay benefits as they come due plus amortize
the UAAL. Once a school district is in full implementation of GASB 45, costs must be allocated in the
same proportions as the components of the ARC, even if the district is not fully funding the ARC.
Unfunded Actuarial Accrued Liability (UAAL) This is the unfunded portion of the PVPB which represents the value of OPEB benefits already earned in
exchange for an employee’s past service.
Active Employees
The UAAL Active cost should be charged to objects 3751 and 3752 or if unduly burdensome to
the programs, to objects 3701 and 3702.
Retired Employees
The UAAL Retiree cost must be charged to objects 3701 and 3702.
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3-4 GASB
GASB 45 - OPEB
Normal Cost
This is the portion of the PVPB to be allocated each year which represents the cost for OPEB benefits
being earned by active employees in exchange for their services now. The normal cost must be charged
to object 3751 and 3752. Costs are direct charged as a fringe benefit to program(s) to which each OPEB-
eligible active employee’s salary is charged
Pre-GASB 45 Implementation Accounting If you funded OPEB purely on a pay-as-you-go basis, not based on an actuarial valuation, then costs paid
for retirees were allocated in proportion to total salaries or total FTEs.
Table 1 Funding on pay-as-you-go basis, not based on actuarial valuation
Retirees Allocate 3701/3702
GASB 45 Implementation Accounting Under GASB 45 implementation accounting, the amount you pay (e.g. your pay-as-you-go amount) is
considered to contribute to costs for both retirees and OPEB-eligible active employees. The split is
determined with information from your actuarial valuation.
Table 2 GASB 45 implemented
Retirees Allocate 3701/3702
Actives (Normal cost)
Direct Charge 3751/3752
Actives (UAAL)
Direct Charge* *if not unduly burdensome to programs
OR Allocate
3751/3752
3701/3702
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3-5 GASB
GASB 45 - OPEB
Determine split of ARC
1. Obtain Information from the Actuarial Report
a. Find the Annual Required Contribution in your district’s actuarial study. It should be
broken down into two components: Normal Cost and Amortization of the Unfunded
Actuarial Accrued Liability (UAAL). Enter these amounts and determine the percentage
of the total as shown below:
Annual Required Contribution (ARC) Normal Cost $1,728,703 43.82%
Amortization of UAAL $2,216,447 56.18%
Annual Required Contribution $3,945,150 100.00%
b. The UAAL needs to be broken out into two components: active employees and retirees.
This is shown in the section of the report that shows the Actuarial Accrued Liability
(AAL). Enter these amounts and determine the percentage of the total as shown below:
Actuarial Accrued Liability (AAL)
Normal Cost $27,836,912 79.57%
Amortization of UAAL $7,146,016 20.43%
Annual Required Contribution $34,982,928 100.00%
c. The percentages for the AAL need to be applied to the Amortized UAAL of $2,216,447 as
shown below:
Breakdown of UAAL
Actives $1,763,627 79.57%
Retirees $452,820 20.43%
Total Amortized UAAL $2,216,447 100.00%
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3-6 GASB
GASB 45 - OPEB
d. Incorporate the dollar amounts for the UAAL into a final chart breaking down the
components of the ARC as shown below:
Annual Required Contribution (ARC)
Normal Cost $1,728,703 43.82%
UAAL Actives $1,763,627 44.70%
UAAL Retirees $452,820 11.48%
Annual Required Contribution $3,945,150 100.00%
e. Actual retiree benefit costs must be allocated according to the percentages created in
Step 1d. Districts must use the following objects:
i. Normal Cost: Objects 3751, 3752
ii. UAAL Actives: Either Objects 3751, 3752 or 3701, 3702
iii. UAAL Retirees: Objects 3701, 3702
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3-7 GASB
GASB 45 - OPEB
Allocating OPEB Costs Costs must be allocated to all activities in proportion to total salaries in all activities or total FTEs in all
activities.
Total salaries/FTEs o Not just OPEB-eligible salaries/FTEs or H&W-eligible salaries/FTEs
All activities o Not direct charged to program in which employee worked before retiring o Not all charged to general administration o “All activities” refers to any combination of fund, goal and function (but not necessarily
resource) to which any salaries or any FTEs are charged. May choose not to charge a particular resource it’s share, but can’t recover
from another resource unless allowed by that resource Example: may choose to not charge Title IV, can’t charge to Title I but can
charge to RS 0000; use same function as would have been used
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3-8 GASB
GASB 45 - OPEB
Allocating OPEB Expenditures using QCC/Excel 1. Find OPEB expenditure amount to allocate 2. Gather your total salaries – account strings and amounts of all salaries (classified and
certificated) for all funds 3. Find percentages of total salaries for each account string 4. Allocate OPEB expenditure by the percentages of total salaries 5. Create transfer spreadsheet 6. Review allocations
o Not all resources need to be allocated, but no resource should be allocated more than their share. The primary focus on the allocation is the function allocation.
o Should you decide to not allocate to a particular resource, you can use the Replace function for those account strings to change resources to 0000 – leaving the goal and functions as they were.
o You may also choose to not allocate out to all of your local codes and replace them all with zero as well.
7. Import transfer into QCC 8. Save Transfer – validate account strings and save
Step 1 – Find your amount to allocate
Use Account Look-up to find your 37xx
Note the total amount expended to 3701 and 3702
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3-9 GASB
GASB 45 – OPEB
Allocating OPEB Expenditures using QCC/Excel Step 2 – Gather your Total Salaries (all funds)
Use Account Look-up to find the 1xxx (certificated salaries)
Once you have your search, you will next grid your results and send it to excel
Then repeat for 2xxx (classified salaries) and add this data to the bottom of the certificated list
This will give the district’s total salaries
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3-10 GASB
GASB 45 - OPEB
Allocating OPEB Expenditures using QCC/Excel Step 2 – Gather your Total Salaries (all funds) – (continued)
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3-11 GASB
GASB 45 - OPEB
Allocating OPEB Expenditures using QCC/Excel Step 3 – Gather percents of total salaries
Reduce your list by deleting any zero amounts, keep only the columns with the account strings
and expensed amounts
Resort list by account string
Total the salaries and determine each account string percent of total
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3-12 GASB
GASB 45 - OPEB
Allocating OPEB Expenditures using QCC/Excel Step 4 – Allocate the OPEB total
First allocate total of 3701 by the percentages of each account string
Then allocate total of 3702 in the same way
Save your work at this point – be sure to change your file to .xls or .xlsx
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3-13 GASB
GASB 45 - OPEB
Allocating OPEB Expenditures using QCC/Excel Step 4 – Allocate the OPEB total – (continued)
First allocate total of 3701 by the percentages of each account string
Then allocate total of 3702 in the same way
Save your work at this point – be sure to change your file to .xls or .xlsx
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3-14 GASB
GASB 45 - OPEB
Step 5 – Create the Transfer using Excel
Copy tab twice to begin next process (this way if you make a mistake, you still have your data to
this point) – one tab for 3701 and one tab for 3702
Starting with 3701, delete column with 3702 data and create the new account string for transfer
Using excel, you can replace the object code from the original account string with the new
object code 3701. There is more than one way to use excel to do this function, one example is
provided below.
Then repeat on the tab for 3702 – delete 3701 data and use 3702 as your new object code
Step 6 – Review Process
Now that you have your 3701 and 3702 allocated, you can begin the review process
Not all resources need to be allocated, but no resource should be allocated more than their
share. The primary focus on the allocation is the function allocation. Should you decide to not
allocate to a particular resource, you can use the Replace function for those account strings to
change resources to 0000 – leaving the goal and functions as they were.
You may also choose to not allocate out to all of your local codes and replace them all with zero
as well.
Once your account strings are ready for transfer, you can import into QCC.
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3-15 GASB
GASB 45 - OPEB
Step 7 – Import into QCC
Create spreadsheet with only data needed for QCC. Data needs to be in specific order.
Watch for negative values (if there is a negative value, change value from a debit to a credit
value and delete zero value transfer amounts
Spreadsheet should have no headers, no totals, and in this order:
o District # o Account string o Debit amount o Credit amount o Description (optional)
Copy and paste values from your two working tabs into a new tab or workbook. Be sure you
paste values as your formulas would not work in the new worksheet.
The allocated values will be debits against your new account strings, the original account string
your OPEB was allocated to is your credit account string and value amount
You may want to total each column so you know you have a balanced transfer, but be sure to
remove the totals before importing.
Open QCC TF application, click “ + “ to add new
Enter your Transfer date, description, and click on the import Icon
You can either save your worksheet and import in as a workbook or you can copy your data and
import from the clipboard
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3-16 GASB
GASB 45 – OPEB
Step 7 – Import into QCC –(continued)
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3-17 GASB
GASB 45 - OPEB
Step 7 – Import into QCC – (continued)
From Clipboard: copy data from spreadsheet and click the clipboard icon, all data will populate. Be sure
there are no errors and click the green circle with the arrow to return to your TF.
Step 8 – Validate Account Strings
When saving the transfer, account strings will probably need to be validated.
Open QCC Account Maintenance tab. There is a mass validation option available.
Copy just the account strings from the created spreadsheet.
Bulk Import (F7)
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3-18 GASB
Step 9 – Save Transfer
Once all account strings are validated, the TF can then be saved.
Paste account strings
Return with strings. Process
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3-19 GASB
GASB 54
GASB 54
In The Governmental Accounting Standards Board (GASB) has issued Statement 54 (GASB 54), Fund
Balance Reporting and Governmental Fund Type Definitions, which considerably alters the categories
and terminology used to describe the components that compose fund balance. These changes are
intended to enhance how fund balance information is reported and to improve its usefulness by
establishing new fund balance classifications that are easier for users to understand and apply. The new
standard also clarifies the definitions of certain governmental funds.
Effective Date GASB 54 is effective for LEA financial statements for fiscal year 2010–11.
NEW Fund Balance Classifications GASB 54 implements a five-tier fund balance classification hierarchy that depicts the extent to which a
government is bound by spending constraints imposed on the use of its resources. Not all of these
classifications will be needed in every governmental fund or by every LEA. The five classifications are:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Resources
CDE letter http://www.cde.ca.gov/fg/ac/as/correspondence.asp
This January 7, 2011 letter and its attachments discuss key provisions of GASB 54, identify
implementation issues, and provide accounting guidance.
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3-20 GASB
GASB 63 and 65
GASB 63 and 65 In The Governmental Accounting Standards Board (GASB) has issued Statement 63 (GASB 63), Financial
Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources and Net Position
Background Traditionally, the statement of financial position has comprised three elements – assets, liabilities, and
the difference between the two. In 2007, the GASB issued Concepts Statement 4, Elements of Financial
Statements, in which two additional financial statement elements were established – deferred outflows
of resources and deferred inflows of resources.
Deferred outflows of resources – consumption of net assets that is applicable to a future
reporting period Deferred inflows of resources – acquisition of net assets that is applicable to a future reporting
period
These new financial statement elements reflect the GASB’s conclusion that certain transactions subject to deferred recognition do not meet the definition of assets or liabilities. In addition, the introduction of these two new financial statement elements makes the traditional description of the difference between assets and liabilities, defined in GASB 34 as “net assets,” inaccurate. Consequently, Concepts Statement 4 describes the residual of all elements presented in the statement of financial position as “net position,” rather than “net assets.”
GASB Concepts Statement 4, Elements of Financial Statements, identifies two new financial statement
elements – deferred outflows of resources and deferred inflows of resources. Concepts Statement 4 also
specifies that recognition of these financial statement elements should be limited to instances
specifically identified in GASB authoritative pronouncements. GASB 63, Financial Reporting of Deferred
Outflows of Resources, Deferred Inflows of Resources, and Net Position, provides financial statement
presentation guidance for deferred outflows and inflows of resources but does not specifically identify
items that should be recognized as such. GASB 65 was issued to identify these items.
Implications for LEAs
As noted above, a few items identified in GASB 65 to be reclassified may apply to LEAs. For example, in governmental funds, certain unavailable revenue that is currently reported as a liability (deferred revenue) will be reported as a deferred inflow of resources. Another example is the deferred debit or credit amount resulting from a debt refunding. These amounts are currently reported as an asset or liability, respectively, but will now be reported as a deferred outflow of resources or a deferred inflow of resources.
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3-21 GASB
GASB 63 and 65
In addition, GASB 65 limits the use of the term “deferred” to deferred inflows of resources and deferred outflows of resources. This means that the term “deferred revenues” will need to be changed to reflect this directive.
Finally, GASB 65 clarifies that deferred outflows and inflows should be included in the determination of major funds.
The provisions of GASB 65 will necessitate some changes to the SACS software fund forms and government-wide reports, including conversion entries. The CDE also plans to issue more detailed guidance in the near future regarding implementation of the provisions of GASB 65 as well as GASB 63.
Effective Date GASB 63 and 65 is effective for LEA financial statements for fiscal year 2013–14.
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3-22 GASB
GASB 68
GASB 68 The Governmental Accounting Standards Board (GASB) has issued Statement 68 (GASB 68), Accounting and Reporting for Pensions, requires employers that participate in cost sharing pension plans, such as the California Public Employees’ Retirement System (CalPERS) and California State Teachers’ Retirement System (CalSTRS), to report in their accrual-basis financial statements a proportionate share of the pension plan’s net pension liability. This liability is required to be recorded in the financial statements, e.g., Statement of Net Position, not merely disclosed in the notes to the financial statements. This means that the employer’s Net Pension Liability will appear on the face of the financial statements for the first time.
Effective Date GASB 68 is effective for LEA financial statements for fiscal year 2014–15. A measurement date must be selected and consistently applied from period to period. Since schools have the same year-end date as Cal-PERS and CalSTRS, the employer can choose between the prior year-end or the current year-end for the measurement date. Whatever is chosen as the measurement date, it will need to continue and can't change from period to period. We encourage you to discuss audit and reporting requirements of GASB 68 with your auditors.
Accounting Although CalPERS will provide GASB 68 information regarding your CalPERS pension plan, it is your responsibility to work with auditors to determine how to present GASB 68 information in your financial statements
Resources Cal-STRS letter http://www.calstrs.com/sites/main/files/file-attachments/eicvol30iss2_v2.pdf
Cal-PERS FAQ http://www.calpers.ca.gov/index.jsp?bc=/employer/actuarial-gasb/home.xml
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4-23
Indirect Costs
TCSOS YEAR END CLOSE REFERENCE BOOK
4 Indirect Costs
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4-24
Indirect Costs
Indirect Costs and Rates
Indirect Costs Indirect costs are agency wide general management costs not readily identifiable with a particular
program but necessary for the overall operation of the agency (e.g. costs of accounting, budgeting,
payroll preparation, personnel management, purchasing, warehousing, and centralized data processing).
Direct costs can be identified with a particular instructional program or support service necessary to
maintain the program.
Indirect Cost Rate Indirect costs are distributed to programs using the indirect cost rate. The indirect cost rate is the ratio
(expressed as a percentage) of the adjusted indirect costs to the direct base costs. A multiyear list of
indirect cost rates is posted online annually at http://www.cde.ca.gov/fg/ac/ic and is included in the
appendix.
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4-25
Indirect Costs
Calculation of Indirect Costs
The amount of allowable indirect costs charged to a grant or entitlement program is determined by
actual expenditures during a fiscal year, not by the entitlement. To calculate the indirect cost to be
charged to a program, multiply the actual expenditures in objects 1000 – 5999 less object 5100 by the
allowable indirect cost rate. For sub-agreements, the first $25,000 can be coded to object 5800 and
subject to indirect, the remainder is charged to object 5100 (see Procedure 330 CSAM pages 20-21).
Tip: Finalize all 1000-5999 costs (including direct support costs – see
Special Education section) before calculating indirect costs
Some programs cap the allowed indirect cost rates, others have an administrative cap that limits a
combination of direct administrative costs and indirect costs, while others do not allow indirect costs at
all, requiring that the entire award amount be spent on direct costs. The data provided in the SACS
Query at http://www2.cde.ca.gov/sacsquery/querybyresource.asp shows the allowable indirect cost
rate for each resource.
Flexibility and Indirect Costs It is a local decision on whether or not a district that chooses to continue to operate a formerly
restricted program wants to charge indirect costs on that program. It has a zero sum effect because the
unrestricted program would be charged an unrestricted cost but it would redistribute the costs by
program.
Intrafund Indirect Costs When indirect costs are charged to programs within the same fund, object 7310 or 7334 and function
7210 is used. The program receiving the service is charged (a debit entry) and the program providing the
service is credited. The total of all 7310 and/or 7334 accounts must be a zero balance.
Interfund Indirect Costs When indirect costs are charged to programs within the Child Nutrition, Child Development or Adult Education Funds, object 7350 and function 7210 is used. The program receiving the service is charged (a debit entry) and the program providing the service is credited. The total of all 7350 accounts must be a zero balance.
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Local Control Funding Formula 5-1
TCSOS YEAR END CLOSE REFERENCE BOOK
5 Local
Control
Funding
Formula
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Local Control Funding Formula 5-2
Deferred Apportionments
There are two sets of accruals o Accruals for apportionments deferred by the state
o Accruals at year-end close to bring revenue recognized to match final LCFF estimate
Deferred apportionment payments - None
Process when there is a deferral TCSOS books accruals as a TF with “ER” in the description field, such as “ER P-1 def to July LCFF.”
Revenue is posted to appropriate revenue account, such as object 8011 Other side of the TF is posted to the Accounts Receivable Set-up account, object 9209,
in the G/L (or 9509 Accounts Payable Set-up for payables).
TCSOS posts deposit as TF to 9210 (or 9510 for payables) when cash is received
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Local Control Funding Formula 5-3
Final Year End Accrual
Annual vs. P-2 amounts When closing Current Fiscal Year books, estimated final Local Control Funding Formula is based on
Annual property taxes, etc.
But, Actuals to date include amounts based on P-2
July – June deposits
Deferred apportionment accruals (bringing total to certified P-2 amount)
Need to book an accrual for the difference between the final LCFF estimate and Actuals to date
Usually a Payable The final year end LCFF accrual is typically a payable since usually the district has received more from
the State than they should have according to the estimated final Local Control Funding Formula
(because Annual property taxes is typically higher than P-2 projections)
Basic Formula is: State Aid + EPA + Taxes = Local Control Funding Formula
Data needed Need final info before accrual can be calculated
ADA - know by July 15
Taxes - know by Aug 15
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Local Control Funding Formula 5-4
Final Year End Accrual
Process TCSOS will send Current Fiscal Year Local Control Funding Formula spreadsheet with final year-end
accrual amounts shortly after August 15 (see fiscal close calendar for expected date).
District will book accruals in Current Fiscal Year books
CDE will certify the Current Fiscal Year Annual Principal Apportionment in February of the subsequent
year and flow ‘settle-up’ amounts starting that February.
• Amounts will post in Current Fiscal Year books to object 8019/8319
District will close accruals with -0- amount
• Receivables: clear to recon object 8019, will offset posted ‘settle-up’ amounts
• Payables: close through a batch, then journal to 8019/8319, will offset posted ‘settle-up’
amounts
• Accruals can be closed in Subsequent Fiscal Year at any time
• Some districts do this in Subsequent Fiscal Year books immediately after setting up the
accruals in Current Fiscal Year books so it is not forgotten
• Some wait until February or end of the Subsequent Fiscal Year
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Local Control Funding Formula 5-5
Local Control Funding Formula Transfers
Special Ed Object 7142 for transfers from districts to COE
Object 8091 is closed beginning in 2013-14
TCSOS has prepared all spreadsheets and transfers as of 6/30/15
Transfers In Lieu of Property Taxes Charter schools receive their property taxes via a transfer from the sponsoring district
Object 8096
Will know final projected annual amount after Aug 15
Summary included in LCFF spreadsheet that TCSOS will send
Process for transfers to district charters
District handles entries and postings, TCSOS will offer assistance if needed
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Local Control Funding Formula 5-6
LCFF-Class Size Reduction
For 2013-14 only the following procedure covers LCFF compliance requirements including adequate
progress toward the 24:1 K-3 class size ratio as required for the K-3 GSA. For 2013-14 the audit
procedure will only require a verification that the LEA is aware of the LCFF requirements, and the audit
procedure will not have funding consequences. New procedures will be instituted in 2014-15 that will,
among other things, require LEAs to demonstrate they have made adequate progress toward the 24:1
class size ratio equivalent to the gap percentage funded for both 2013-14 and 2014-15, has collectively
bargained an annual alternative average class enrollment, or risk losing all K-3 GSA funds.
The new audit procedure in 2014-15 is to verify that the LEA has made adequate progress toward the
24:1 K-3 average class size. It is important to note the procedure was modified to make sure that
districts will not be penalized for making more than adequate progress, as the measurement of progress
will always be made based on total gap percentage funded through the current year relative to the
2012-13 average class size base.
K-3 Class-size calculations
Excluded:
o Special day classes
Included: o TK classes o Combination classes including any students in grades K-3 o A grades 3/4 combination class – in this case, all students in the class are counted toward the school site average. The district, however, receives the funding adjustment for only the students in the third grade
An active enrollment count is maintained for each class in kindergarten and grades 1-3 at each school site
o Pupils enrolled in a class on the first day of a school year o Plus later enrollees o Minus withdrawals since the first day
Active enrollment counts are taken on the last teaching day of each school month that ends prior to April 15
Pupils enrolled in full-day independent study are excluded from the active enrollment count for a class
Average pupils enrolled per class o For each class in kindergarten and grades 1-3, divide the sum of the active enrollment counts by the total number of those counts
Average class enrollment o For each school site, divide the sum of the average pupils enrolled per class by the number of classes in kindergarten and grades 1-3
The result is rounded to the nearest “half or whole integer”
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Local Control Funding Formula 5-7
Using typical rounding conventions, rounding points are:
Down to nearest
integer
To nearest “half integer”
(.5)
Up to nearest integer
Fractional
Remainder ≤ 0.244 0.245 to 0.744 0.745 or greater
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Local Control Funding Formula 5-8
LCFF-K-3 CLASS SIZE
K-3 Class-size-Demonstrating Progress When calculating progress, the actual GAP funding rate (Ed.Code 42238.02) or the May revise Gap funding rate (Ed.Code 15498.3(e)) may be used.
TK-3 Class Size Average - Adequate Progress Determination
Notes: If the district is operating under a collectively bargained alternative, leave this tab
blank. Progress in 2013-14 may be determined by a separate local formula. 2012-13 2013-14 2014-15 2015-16
Target class size 24.00 24.00 24.00
GAP funding rate selection May Revise May Revise May Revise
Current 12.00% 29.97% 53.08%
May Revise 11.75% 28.06% 53.08%
MADE ADEQUATE PROGRESS? YES YES YES
TK-3 Class Size - Progress toward target
School 1
Average Class Size 28.6 27.8 27.2 25.4
Prior year target 28.60 28.00 27.00
Distance to target 4.60 4.00 3.00
Required progress 0.54 1.12 1.59
Max Class Size to make progress 28.00 27.00 25.50
MADE ADEQUATE PROGRESS? YES YES YES
TK-3 Class Size - Progress toward target
School 2
Average Class Size 29.9 28.5 27.7 25.6
Prior year target 29.90 29.00 27.50
Distance to target 5.90 5.00 3.50
Required progress 0.69 1.40 1.86
Max Class Size to make progress 29.00 27.50 25.50
MADE ADEQUATE PROGRESS? YES YES YES
Make sure you have calculated 12-13 average K-3 class size. This is for your
CSR calculation to ensure you are in compliance with progress towards the
24:1 K-3 class size.
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Local Control Funding Formula 5-9
LCFF-Transportation
The enacted budget maintained Home-to-School Transportation as permanent add-ons to LCFF target
entitlements. The program has been repealed although the funds are made available to the school
districts, county offices of education and charter schools that previously received this funding in the
form of a hold harmless. The funds will be treated as a permanent add-on under the LCFF. The July
budget trailer bill clarifies that small school district transportation is included in the transportation add-
on. The use of the funds was intended to be flexible for any educational purpose. However, the budget
contains transportation maintenance of effort language [see Education Code 2575(k)(1) and Education
Code 42238.03(a)(6)(B)]. Of the funds received for home-to-school transportation, a school district is
required to expend no less than the amount of funds it expended for home-to-school transportation in
the 2012-13 fiscal year or the amount of revenue received in 2013-14, whichever is less. The MOE
requirement only applies to spending up to the amount of the transportation entitlement received in
2012-13; contributions to transportation programs above the amount of the entitlement are not subject
to MOE. MOE compliance will be audited for the 2014-15 fiscal year.
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Local Control Funding Formula 5-10
LCFF-Adult Education
Adult education funds continue to be folded into the LCFF and are intended to be flexible for any
educational purpose. However, the enacted 2013-2014 budget changed provisions for adult education
from the status quo to maintenance of effort model for two years. For the 2013-14 and 2014-15 fiscal
years only, the district or county office of education are required to expend no less for the adult
education program than the amount spent in the 2012-13 fiscal year. MOE compliance will be audited
for the 2014-15 fiscal year
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Local Control Funding Formula 5-11
LCFF-ROC/P
The enacted budget includes ROC/P as part of the LCFF base for districts and county offices that
received the Tier III funding directly from the state. However, the budget included maintenance of effort
requirements stating that, “for the 2013-14 and 2014-15 fiscal years only, of the funds a school district
(or COE) receives for purposes of regional occupational centers or programs […] the school district shall
expend no less than the amount of funds the school district expended for purposes of regional
occupational centers or programs […] in the 2012-13 fiscal year.” The LCFF cleanup bill, SB 97, clarified
that school districts and county offices of education will satisfy the MOE requirement if they collectively
maintain ROC/P spending countywide, including CTE expenditures. Specifically the bill states, “a school
district may include expenditures made by its county office of education within the school district [and
vice versa for COEs] for purposes of regional occupational centers or programs so long as the total
amount of expenditures by the school district and the county office of education equal or exceed the
total amount required to be expended for purposes of regional occupational centers or programs” ...
pursuant to Section 2575(k)(3) (COE requirement) and Section 42238.03(a)(7) (district requirement).
MOE compliance will be audited for the 2014-15 fiscal year. SB 97 also maintains and clarifies the
separate MOE requirements related to ROC/P JPAs. While the original LCFF proposal required the 2.6%
augmentation to the high school grade span base grant to be used to promote “college and career
readiness” (see Section 42238.02.d.4. B-D), cleanup bill SB 91 removed these restrictions. Nonetheless,
the intent of this funding remains to allow districts to provide for CTE in a manner consistent with the
LCFF’s focus on flexibility and local control. In addition, beginning in 2014-15, a CTE component will be a
required element of Local Control and Accountability Plans. SB 97 clarified that LCAPs should include
goals related to the percentage of pupils that complete “career technical education sequences or
programs of study that align with state board-approved career technical educational standards and
frameworks.” Federal CTE funds, including Perkins funding, are not part of LCFF and continue to be
subject to all existing compliance and reporting requirements.
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Local Control Funding Formula 5-12
LCFF-Instructional Materials
EC 60119 public hearing still required • LEAs must continue to have sufficient instructional materials for core subject areas and meet all
the requirements of Education Code Section (E.C.) 60119
Federal Programs
TCSOS YEAR END CLOSE REFERENCE BOOK
6 Federal Programs
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Federal Programs 6-1
Categoricals
Gather all award letters, notices, etc
Unearned Revenue (Grants) • “Earned when spent”
• Revenue = Expenditures
Tip: finalize expenditures first, including indirect costs, then calculate revenue
Restricted Ending Balance (Entitlements):
• Revenue recognized when received or entitled to receive
Tip: Finalize revenues first, then review expenditures in case you need to reclassify any
expenditures from programs that are not allowed to encroach
Use CAT form to help calculate A/R’s & Deferred Revenues May use SACS CAT form or separate spreadsheet
Use QSS report GLD320 to help balance resources
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Federal Programs 6-3
Special Education
Direct Support Use SACS to compute direct support costs
o Confirm all other expenditures complete o Import from QSS into SACS o Open PCRAF, enter the FTE's and CU's as appropriate, then save and close o Open, save and close the PCR o Open "User Data Input/Review“ o Click on the heading for object so it will sort by object o Go to bottom of listing to find rows that list objects called "PCRA" and look for the ones
with a 5001 goal. These are the amounts to allocate to special ed broken down by function
Book direct support costs in QSS o Object 5710
Clear allocated direct support costs in SACS o CLEAR FACTORS IN PCRAF FOR SPECIAL EDUCATION ALLOCATION FACTORS, SAVE AND
CLOSE
o Open, save and close the PCR o IF THE FACTORS ARE NOT CLEARED AND PCR RE-SAVED, THE DIRECT SUPPORT COSTS
WILL BE DUPLICATED IN SACS AND ON YOUR MOE o Re-import from QSS into SACS
Booking costs – BE CAREFUL! REMOVE FACTORS SO COSTS ARE NOT DOUBLED IN SACS
Example –
Suppose the PCRA/Goal 5001 list shows that $1484.62 is Special Education’s share of the Function 3110 (Guidance/Counseling) costs.
Your TV might look like this:
Debit 01-6500-0-5710-5001-3110 $1484.62
Credit 01-0000-0-5710-0000-3110
Problem-
$1484.62
• Original expense was coded to Resource 6405 • We moved expense to Resource 6500, but credited Resource 0000 • Leaves Resource 0000 with a negative balance for that function code
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Federal Programs 6-5
Special Education
Maintenance of Effort Special Education Maintenance of Effort requires a district spend at least as much (total or per student) as the year before in State and Local Expenditures. District must pass and SELPA must pass
Two comparison tests:
Subsequent Year Budget vs. Current Year Actuals Current Year Actuals vs. Prior Year Actuals
Remember to include your pupil count - see appendix for a listing of pupil counts for each district.
When calculating MOE, if it appears the district is not in compliance, review the following: • Verify that all special education expenditures have been reported using a special education Goal • Determine if the reduction in expenditures is a result of the allowable exemptions:
Staffing reductions due to retirements or other departures have been replaced by qualified lower-salaried staff
A decrease in special education enrollment Termination of an exceptionally costly program because a student has left the district, has
reached the age of obligation or no longer needs the program • Determine if MOE is met after accounting for 50% of the increase in federal IDEA Part B funds
50% of the annual increase in federal IDEA part B award may be used to reduce the prior year base,
but only if savings is used for Elementary and Secondary Education Act (ESEA) (almost everything short
of basic operations and administration qualify). If this option is used, the 15% allowance of federal
funds for early intervention services may not be used.
Complete the MOE forms in the SACS software (SEMA and SEMB) completely and accurately. Contact TCSOS for help if you have any questions.
Tip: Run the test early, Use SACS form or separate spreadsheet. Contact
TCSOS if it looks like you may be out of compliance.
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Federal Programs 6-6
Federal Transferability
Non-Program Improvement (PI) districts may transfer 50% of funding
between: Improving Teacher Quality (4035)
Enhancing Education through Technology (4045)
Safe and Drug-Free Schools (3710)
Innovative Schools (Title V) (4110)
Or into, but not out of, Title I, Part A (3010)
PI districts limited to 30% transfer and must go to school improvement
Notify CDE through electronically updating the Consolidated Application
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Federal Programs 6-7
Consolidation of NCLB funds for administration
Flexibility in charging administrative costs
Simplified accounting and personnel activity timekeeping
Request to consolidate in ConApp Part II – but may still update & resubmit by end of fiscal year
Administrative costs accumulated in one resource, 3155
Costs distributed back to programs at year-end using object 5710 (before indirect costs are
charged)
Indirect costs still charged directly in each program
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Federal Programs 6-8
Rural Education Achievement Program (REAP)
Purpose: assist rural school districts in using Federal resources more effectively to improve quality of
instruction & student academic achievement
Two Programs Small Rural School Achievement (SRSA)
Some districts in our county in this program
Rural and Low-Income Schools (RLIS)
No districts in our county in this program
If eligible for SRSA, can’t receive funding under RLIS
Small Rural School Achievement (SRSA) For small (<600 ADA or in low population density county), “rural” school districts
Two components
REAP-Flex
Greater flexibility in spending federal funds (no funding, just flexibility)
Small Rural School Achievement (SRSA) Grant Program
USDE awards funds to LEAs
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Federal Programs 6-9
Rural Education Achievement Program (REAP)
REAP-Flex No transfers from one program to another
Broader authority to spend “applicable funding” for alternative uses
So, funds in these programs:
1. Improving Teacher Quality (4035)
2. Enhancing Education through Technology (4045)
3. Safe and Drug-Free Schools (3710)
4. Innovative Programs (Title V) (4110)
May be spent on these uses:
1. Title I, part A (3010)
2. Improving Teacher Quality (4035)
3. Enhancing Education through Technology (4045)
4. Limited English Proficient and Immigrant Students (4201 & 4203)
5. Safe and Drug-Free Schools (3710)
6. 21st Century Community Learning Centers (4124)
7. Innovative Programs (Title V) (4110)
If qualified for REAP-Flex, then the district would not use Federal Transferability because REAP-Flex
covers the same programs with greater flexibility
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Federal Programs 6-10
Rural Education Achievement Program (REAP)
SRSA Grants • Funds awarded directly by USDE
• Must submit application
• May spend funds on same 7 uses listed in REAP-Flex, can be one or more of these programs
• Don’t need to do transfers – just spend from REAP-SRSA (5810)
• Access funds through USDE’s Grant Awards Payment System (GAPS)
REAP information • REAP website - http://www2.ed.gov/nclb/freedom/local/reap.html
• Current year award amount also listed in Revenues workbook provided by TCSOS
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7-1 State Programs
TCSOS YEAR END CLOSE REFERENCE BOOK
7 State Programs
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7-2 State Programs
Flexibility
Overview The enacted State Budget eliminates most state categorical program funding, except for a few
programs funded outside the LCFF. Programs categorized as Tier III under SBX3 that have been
flexed since 2008-09 are eliminated, including program requirements, and combined into the
base in calculating the LCFF. Tier III public hearings as required under SBX3 are no longer
required beginning in 2013-14.
.
o Routine Restricted Maintenance: LEAs continue to have flexibility to reduce the
contribution to 1% (or 0% if in compliance with Williams) through 2014-15, and then the
3% requirement returns. The requirements under the Williams Act remain. Districts
should review their routine maintenance needs and ensure that Williams Act
requirements are met and that students are housed in facilities that are safe, clean and
in good repair.
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7-3 State Programs
Flexibility
Deferred Maintenance Resource 6205 is closed effective 2010-11 and the 6/30/08 ending balance is available for transfer, pursuant to ABX4 2 (Chapter 2, 2009).
Deferred Maintenance Accounting Questions - Excerpts from April 2010 SFSS Meeting Notes
1. Districts that are transferring their Fund 14, Resource 6205 fund balance amounts to Fund 14, Resource 0000 directly rather than sending the dollars to Fund 01, Resource 0000 then having Fund 01 transfer them back to Fund 14 as unrestricted. Is this ok?
a. Mechanically, they can. CDE gave guidance that the correct entry to reflect the flexing of the funds would be to transfer the funds to the General Fund, and the correct entry to reflect the LEA’s decision to use these or any flexed funds for Deferred Maintenance would be to transfer the funds to FD 14 (assuming the LEA wishes to continue to use Fund 14, which is not required now that the funds are flexed).
b. CDE staff still believe this is the correct method of coding these transactions, but acknowledge that LEAs may be resistant to following it because of implications for LEA reserve levels or RMA contributions. Nothing will prevent LEAs from coding the transactions in this way and CDE will not be checking these types of entries.
2. If Fund 14, Resource 0000 has a fund balance of $100,000 at 6/30/10, can an LEA transfer these dollars to Fund 01, Resource 0000 in subsequent years?
a. If the LEA’s current vision is that the flexed funds will be used for deferred maintenance, but if that changes next year, the LEA could transfer the funds to the General Fund next year. If the LEA has no particular intent to use the funds for Deferred Maintenance, the LEA should transfer them to the General Fund now to avoid misleading anyone as to the flexed nature of the funds
b. Next year this would be a regular inter-fund transfer
3. Can fund 14, Resource 0000 dollars be used for any educational purpose within Fund 14 in 09- 10? … subsequent years?
a. The only educational purpose for which flexed dollars in the Deferred Maintenance Fund should be used is for deferred maintenance. Most other educational activities are to be coded in the General Fund.
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7-4 State Programs
Flexibility
Committed Flexed Revenues in Funds 11 and 14
GAAP requires that flexed revenues that have been committed by formal action consistent with GASB 54 to the purposes of Fund 11 or Fund 14 should now be reported directly in those funds as revenue using Resource 0000, Object 8590, not an interfund transfer.
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7-5 State Programs
Lottery
3rd quarter payment could likely come at the end of June
4th quarter payment – accrual • Use rate in CDE letter (usually received in July)
• Multiply by annual ADA x factor of 1.04446
Lottery expenditures included in audit guide • Prop 20 funds: auditor will verify expenditures were for instructional materials as defined in E.C.
60100 (h), (m), or (n)
• Non-prop 20 funds: auditor will determine whether any funds were used for ineligible
expenditures
• Acquisition of real property
• Construction of facilities
• Financing of research
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7-6 State Programs
Education Protection Account
General Guidance Resource 1400
Revenue Object is 8012
Prior year adjustments not accrued should be object 8019 Expenditures recorded to Resource 1400 should be made using actual object of expenditure, not
lump-sum transfer using Object 5710
Administrative costs are not allowed. The following functions will cause an exception: o Function 2100, Instructional Supervision and Administration o Function 2200, Administrative unit of a Multidistrict SELPA o Function 2700, School Administration o Functions 7000 – 7999, General Administration o Full list of Functions at http://www.cde.ca.gov/fg/ac/ac/sacsfaq.asp
COE’s have further different allowable function and transfer capability-see FAQ llink above EPA funds can be carried over
EPA does not need to be allocated proportionately to the programs whose ADA generated the funding
Proposition 30 requires that the use of EPA funds be determined by the governing board at an open public meeting. Proposition 30 language does not specify that the open public meeting has to be a separately held meeting. Therefore, this requirement may be satisfied at a regularly scheduled meeting, which the CDE believes could be the annual budget adoption meeting.
Proposition 30 requires an accounting of how much money was received from EPA and how that money was spent be reported on the district Web site.
Proposition 30 begins to expire commencing in 2016 o The 0.25% sales tax increase expires in 2016 (i.e., the 2016-17 fiscal year) o The high-bracket personal income tax increase expires in 2018 (i.e., the 2018-19
fiscal year)
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7-7 State Programs
Economic Impact Aid-Carryover
EIA is now one of the categorical programs included in the LCFF formula. Currently the requirement to post expenditure data to the LEA’s website under Education Code 54029 is still in effect. Districts should continue to post expenditures until cleanup language is completed. Carryover funds from EIA
entitlements for 2012-13 and any previous fiscal years are still subject to the former EIA restrictions.
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7-8 State Programs
Common Core
General Guidance Resource 7405
Revenue Object is 8590
CCSS implementation funds may be used to support the implementation of the California Common Core State Standards
o Professional development for teachers, administrators, and paraprofessional educators or other classified employees involved in the direct instruction of pupils that is aligned to the academic content standards adopted pursuant to California Education Code (EC) sections 60605.8, 60605.11, 60605.85, and 60811.3.
o Instructional materials aligned to the academic content standards adopted pursuant to EC sections 60605.8, 60605.85, 60605.11, and 60811.3 including, but not limited to, supplemental instructional materials as provided in sections 60605.86, 60605.87, and 60605.88.
o Integration of these academic content standards through technology-based instruction for purposes of improving the academic performance of pupils, including, but not necessarily limited to, expenditures necessary to support the administration of computer-based assessments and provide high-speed, high-bandwidth Internet connectivity for the purpose of administration of computer-based assessments.
As a condition of receiving CCSS implementation funds, a school district, county office of education, charter school, or state special school is required to:
o Develop and adopt a plan delineating how the CCSS implementation funds will be spent. The plan must be explained in a public meeting of the governing board of the school district or county board of education, or governing body of the charter school, before its adoption in a subsequent public meeting.
o On or before July 1, 2015, report detailed information to the California Department of Education (CDE), including, but not limited to, specific purchases made and the number of teachers, administrators, or paraprofessional educators that received professional development.
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7-9 State Programs
Proposition 39
General Guidance Resource 6230
Revenue Object is 8590
Allowable uses of Prop. 39 funds include: o Energy planning activities occurring on or after July 1, 2013 o Energy audits and energy surveys/assessments o Prop. 39 program assistance o Hiring or retaining of an energy manager with a maximum cost of 10% of the award or
$100,000 each year o Energy-related training for classified employees
The California Energy Commission (CEC) released guidelines in December 2013 outlining an eight-step process for participating in the Prop. 39 program, which includes an audit step. These guidelines are available at: http://www.energy.ca.gov/2013publications/CEC-400-2013-010/CEC-400-2013-010- CMF.pdf LEAs should not commit the anticipated funds until they are familiar with the final guidelines and the criteria to enable them to apply and collect the funds.
SACS Export from QCC
TCSOS YEAR END CLOSE REFERENCE BOOK
8 SACS Export from QCC
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8-1 SACS Export from QCC
Select Fiscal Year and SACS Process
Select Fiscal Year (15 in this example)
From the Finances Reports/Process menu search for “SACS”
Select the SACS Download for the period needed (2nd interim for this example)
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8-2 SACS Export from QCC
Selection Screens for Interims
Name your export file
Complete zero’s in LEA ID Select interim period
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8-3 SACS Export from QCC
SACS Export from QCC
Selection Screens for Interims
Click Additional Options tab
Most data will default, but review to ensure options will extract data as desired
Click Accounts tab
Select specific accounts/ funds to export or leave all ??? to select all data Submit job
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8-4 SACS Export from QCC
Selection Screens for Unaudited Actuals
Change Budget FY (15 to 16 in this example)
Name your export file Complete zero’s in LEA ID
Budget Source Data you want to use (Approved Budget for Source year 16 in this example)
Unaudited Actuals: Source data General Ledger Source year 15
The Actuals from and to dates and Fund Balance codes are automatically pre-populated
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8-5 SACS Export from QCC
Click Accounts tab
Select specific accounts/ funds to export or leave all ??? to select all data
Submit job
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8-6 SACS Export from QCC
SACS Export from QCC
Upload Process
Be sure file is ready before continuing process
From Control Center, select Upload/Download Files
Select Transfer Rule (01 for Budget and Unaudited Actuals, 02 for Interims)
Add File Name and Local File Name o Click box and a window to select location will pop up. Select location and file name
Click “Process” icon when complete
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SACS Software
9 SACS Software
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9-1 SACS Software
Getting Started
Load the SACSALL software Usually available in early July
CDE – Finance & Grants – Software & Forms – Financial Reporting
http://www.cde.ca.gov/fg/sf/fr/
Define preferences Software opens to LEA Preferences tab first time
Select LEA and reporting period
Software will save the settings
Go to Setup and click on Preferences to change settings
Are the validation tables current? The software contains the most current validation tables at the time the software was
released. If changes occur to the validation tables, revised tables are posted periodically
to the CDE web site
Three step process to update
1. Download the most current tables
2. Unzip that file
3. Run the SACS software update validation routine inside the software
Transfer data from SACS software to SACSALL software Can do now or at 1st interim
Allows the budget period data to be available for extraction into the interim Criteria and
Standards Review form (Form 01CSI)
Remember to import your Adopted Budget into First Interim
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9-2 SACS Software
Tips on Using the SACS Software
SACS Software User Guide available: Calendars and Manuals subdirectory Help Menu within the SACS software Within the forms and processes in the software by pressing F1
Move by row “Enter” key will move the cursor down the page to the next entry field, bypassing any extracted,
calculated, or locked fields (“Enter” key is disabled in Form 01CS/01CSI)
Move by column “Tab” key moves the cursor across the page to the next entry field, bypassing any extracted,
calculated, or locked fields
Arrow keys Moves the cursor to the next or previous field regardless of the field type
Clearing Cell Values Entered Values
To clear an entered value, select the cell, and press the Delete key on your keyboard. You may
only clear values that have been entered.
Do not use the space bar to delete entries; it will cause problems in the database and errors in
the TRC.
Extracted Values
To clear a cell where its value is extracted but can be overwritten (e.g., the CASH and 01CS
forms), you must enter a zero in the cell.
If extracted cells are cleared by pressing the Delete key rather than entering zero, the original
value may be re-extracted when the form is opened, overwriting the deletions every time the
form is reopened.
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9-3 SACS Software
Tips on Using the SACS Software
Locked Fields If data entry is attempted in a field that does not allow it, a "Locked cells cannot be
modified" message will be displayed. In those entry cells that are two rows tall, simply
move your cursor down to the next row to enter data.
View Sizing Forms may be sized on the screen according to your individual viewing preference by
adjusting the view mechanism at the top of each form. To adjust the view, either click
the mouse to the point you would like the view sizer to move, or drag the view sizer to
the preferred size. After clicking on the view sizer, the arrow keys on the keyboard may
also be used to adjust the view size.
Data based Data is stored in a database, not on each form. The data is extracted from the database
each time a form is opened.
Form Dependencies Those forms that contain general ledger data or supplemental data from another form must be
re-extracted (opened and saved) any time relevant general ledger or supplemental data are
changed. There is a technical review check to identify such occurrences.
See Attachment F in the SACS software user guide for a list of the form dependencies.
User Data Input/Review Accessed under the Forms menu option from the Main Menu General ledger fund data can be entered if imported data does not already exist Data Groups – there are two groups, unaudited actuals data and budget data Data deletion
o Single records of imported unaudited actuals data can’t be deleted, can only delete an entire fund group
o If you need to delete a record, delete the fund group, then re-import the fund For example, you may need to do this if you have imported an invalid account
string, then fixed in it QSS and re-imported. When you re-import, it won’t delete the invalid account automatically.
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9-4 SACS Software
Suggested Data Processing Sequence
Unaudited Actuals Preferences - Select LEA and reporting period.
Import/User Data Input - Import general ledger budget and actuals data from QSS. Manually
input, using the User Data Input/Review screen, any general ledger data that is not maintained
in QSS.
TRC-Import and TRC-General Ledger - Run the TRC-Import and TRC-General Ledger modules for
budget and actuals data, that check the imported and manually entered general ledger data for
valid SACS codes, combinations of codes, ending fund balances, interfund and intrafund
balances, components of ending fund balances, and various other balances. Fatal exceptions
must be corrected; warning exceptions must be corrected or, if the data are correct, must be
explained; informational exceptions should be corrected or, if the data are correct, an
explanation is optional but encouraged.
General Ledger Data Corrections—Make general ledger data corrections, as necessary, in QSS,
and then re-import the applicable fund(s).
Re-run TRC-Import and TRC-General Ledger to verify changes.
Book indirect costs in QSS, if not already done
Form CAT - To calculate the year-end accruals for categorical programs prior to reporting them
in the general ledger.
Re-import from QSS. Re-run TRC-Import and TRC-General Ledger.
Clear allocated direct support costs in SACS (since they have now been booked in QSS, they
don’t need to be allocated)
o Remove special education allocation factors on PCRAF, save and close
o Open, save and close Form PCR
Special Education MOE Reports (Preliminary) – SEMA and SEMB, to make sure the district
anticipates passing SEMOE
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9-5 SACS Software
Suggested Data Processing Sequence
Supplemental forms applicable to various funds such as 76A, and 95A.
Form A – P-2 and Annual ADA data match attendance reports submitted. Revenue Limit ADA
data matches Revenue Limit calculation (see LCFF spreadsheet). Complete, save, and print.
Form CEA.
Form ICR.
Forms ASSET, DEBT, L, NCMOE, SEAS, and SEA, if applicable.
Forms GANN.
Form CA - Unaudited Actuals Certification. Review the Summary of Unaudited Actuals Data
Submission worksheet to verify critical data elements.
TRC-Supplemental - Run the TRC-Supplemental module, which checks for required supplemental
forms, and conditions within those forms. Fatal exceptions must be corrected; warning
exceptions must be corrected or, if the data are correct, must be explained.
Supplemental Data Changes - Make supplemental data changes, as necessary, in the applicable
supplemental forms. If it is necessary to make changes to, and subsequently re-import, general
ledger data, see the next step for General Ledger Data Corrections. Re-run TRC-Supplemental to
verify changes.
General Ledger Data Corrections - Make general ledger data corrections, as necessary, in QSS or
in the Components of Ending Fund Balance screen, and then re-import the applicable fund(s), if
necessary. Re-run TRC-Import and TRC-General Ledger to verify changes.
Components of Ending Fund Balance - Within the Components of Ending Fund Balance screen,
enter or revise applicable components of ending fund balance, by resource. Re-run TRC-Import
and TRC-General Ledger to verify changes (including the components of ending fund balance).
Fund Forms - When the general ledger data are finalized, open, review, and print fund forms as
necessary. Save Form 01.
TRC-Export Validation - Run the TRC-Export Validation module, which checks for required forms,
forms that have unbalanced or incomplete data, and forms that need to be opened and saved
due to general ledger and/or supplemental data changes (dependencies). See Attachment F for
information about clearing form dependencies.
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9-6 SACS Software
Technical Review Checklist, All - To verify that all Exceptions have been corrected, or explained
where applicable.
Table of Contents - Shows the fund and supplemental reports that contain data and/or have
been saved. Upon selecting this form, the software will automatically generate the contents
based on the information in the software database. View or print the Table of Contents to
ensure all applicable forms are completed. You may find it helpful to compare the Table of
Contents to Attachment A of the user guide. In addition, all fund and supplemental forms can be
printed from the Table of Contents window.
Export - Export data to disk using the Official option for submission to TCSOS.
NOTE: The GASB Statement 34 government-wide conversion entries and reports and the Special
Education Maintenance of Effort (SEMOE) reports, found within the Reports menu, should only be
completed after all of the above steps relating to fund reporting are completed.
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9-7 SACS Software
What’s New in the SACS Software
Global Changes
Removed the “Dual Budget, July 1” and “Dual Budget, September 8” dual budget options and all
related forms and processes, effective 2015–16 budget period. The dual budget adoption option
was eliminated by AB 2585 (Chapter 309, Statutes of 2014). All 2015–16 budgets are subject to
the single budget adoption process.
Revised Fund/Supplemental Forms Various fund/form changes
o Forms 01, 09 and 62-Removed Object 8434, Class Size Reduction o Form 14/14I—Other Local Revenue Section. Added new line for Object 8625,
Community Redevelopment Funds Not Subject to LCFF Deduction, effective 2015–16, to allow LEAs to account for Community Redevelopment Funds Not Subject to LCFF Deduction revenue that is committed to the purposes of Deferred Maintenance.
o Form 56/56I—Other Sources/Uses Section. Added new lines for the following object codes, effective 2014–15. Per GAAP, the proceeds of refunding bonds should be reported as an other financing use rather than as an expenditure. Affects COEs and districts.
o Sources Section. Object 8979, All Other Financing Sources. o Uses Section. Object 7699, All Other Financing Uses. o Forms 61, 62, 63, 66, 67, 73—Liabilities Section. Added line for new Object
9663, Net Pension Liability, effective 2014–15, to allow LEAs to record net pension liability in accrual-basis funds in accordance with the provisions of GASB 68, as amended by GASB 71.
o Forms 66—Liabilities Section. Added line for Object 9664, Net Pension Obligation, effective 2014–15, to allow LEAs to record net OPEB obligation in the Warehouse Revolving Fund, consistent with other accrual-basis funds. Affects COEs and districts
Form A
o All worksheets. District Funded County Program ADA Section, Line A5d/B2d/C3d. Renamed line description from “Special Education Extended Year-NPS/LCI” to “Special Education Extended Year,” to match the data collection line description in the Principal Apportionment Data Collection Software.
o Charter School ADA worksheet. Expanded worksheet to classify charter school ADA into two categories: One section to report charter school ADA corresponding to financial data reported in Fund 01; and a second section to report charter school ADA corresponding to financial data reported in funds 09 and 62. This distinction of data is needed for extraction into district Criteria and Standards and district Form MYP.
o All worksheets. County School Tuition Fund line. Removed Line B1a(County Office ADA
YEAR END CLOSE REFERENCE BOOK TCSOS
9-8 SACS Software
tab)/C2a(Charter School ADA tab), County School Tuition Fund, from the County Program Alternative Education ADA Section, and moved it to District Funded County Program ADA Section, as a new Line A5f(District ADA tab)/B2f(County Office ADA tab). Due to Education Code Section 2576(c).Form CEA o Added reductions in Column 4a and 13a for Resources 6230 and 6381
Form CB o Inserted a checkbox in front of the first paragraph, requiring districts to check
the box relating to the required certifications. If the district does not check the
box, a fatal TRC exception will result
Form CEA/CEB
o Added new resource codes and removed obsolete resources codes
o Added a new section for LEA’s to provide and explanation for adjustment
(overrides) in column 4b
Form Debt
o Added new line for Net Pension Liability, due to the implementation of GASB 68,
as amended by GASB 71
Form MYP o Line F2, District ADA. Modified ADA extraction to exclude charter school ADA for
charter schools that report financial data in the district’s funds 09 and 62
Form NCMOE o Modified Form A extractions. Due to the LCFF change in funding for the former
County Office Funds Transfer ADA, and the subsequent accounting guidance
Revised Criteria and Standards
o Adjusted deficit spending and fund balance levels for COEs, and reserve levels
for all LEAs, based on prior year's statutory COLA factor
o Various adjustments from the redesigned A form and the exclusion of charter
school ADA
o Additional Fiscal Indicator A3, modified the enrollment comparison to use the
Actual column for prior years instead of the budget column
Technical Review Checks
o CB New fatal if box relating to certifications not checked o RES6500xOB8091. New fatal if Object 8091 or 8099 is used with Resource 6500
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9-9 SACS Software
Form A
Three tabs – District, County Office, Charter School
P-2 column
Should match P-2 Attendance Reports
Annual column
Should match Annual Attendance Reports
Funded ADA column
Tip – use the LCFF spreadsheet to help you with this column
District Funded County Program Funded ADA – mix of P-2 and Annual
Special Day Class
Local Control Funding Formula ADA = P-2 SDC + Annual SDC-extended
year
See ADA section on LCFF spreadsheet to be sent by TCSOS
NPS – LCI
See ADA section on LCFF spreadsheet to be sent by TCSOS
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9-10 SACS Software
Form CEA
Current Expense Formula
Excludes certain expenditures: nonagency, community services, food services, retiree benefits,
facilities acquisition and construction, etc.
Excluded amounts are extracted by software based on goals, functions, objects
Total in column 3 is the Current Expense of Education
Minimum Classroom Compensation
Certain expenditures included in Current Expense, but not in Minimum Classroom Comp.
Transportation (function 3600)
Lottery (resource 1100)
NPS (function 1180)
Excluded amounts are extracted by software into column 4a (and line 13a)
If any amounts (even -0-) entered in column 4b, form will ignore column 4a
The same rule applies for lines 13a and 13b
A reason you might manually enter amounts in 4b is if all applicable resources are not extracted into 4a.
Column 5 total is the denominator
Line 14 is the numerator
Part III Line 3 should be zero
Should line 3 be greater than zero, check to see if you qualify for an exemption and
enter “x” on line 16 if you do
EC 41374 provisions for exemption (Line 16)
Elementary – no class session > 28 pupils in attendance
High School – no class session > 25 pupils in attendance
not counting visual & performing arts, industrial arts, physical education
Your external auditor will check this – it is in the Audit Guide:
§ 19829.5. Classroom Teacher Salaries.
This section directs the auditor to check for compliance with the requirements of Education
Code Section 41372, regarding minimum expenditures for classroom teacher salaries as a
percentage of the district’s current expense of education.
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9-11 SACS Software
Form CEA
Noncompliance Checking
Classroom teachers and other classroom staff (i.e. classroom aides, tutors, or other staff providing direct educational services) should be coded to function 1XXX
Whenever possible, classroom teachers and direct instructional support staff costs should not be coded to any resource excluded from the CEA calculation. Direct instructional support staff costs in Lottery RS 1100 are included in Part II.
Expenditures coded to Lottery RS 1100 are excluded in Part I. Review the possibility of reclassifying additional expenditures to this resource as appropriate. An increase in lottery expenditures will lower the total expenses in Part I.
Review expenditures coded to functions 2100, 2130, 2140 to make sure that staff salaries or staff development costs, including substitutes, are not recorded here; these expenditures should be recorded as function 1000.
Look for costs that should be coded to the goals and functions deducted in Part I (e.g. non- agency, community services, food services) but that currently are not. For example, for expenditures for shared staff and services among agencies, the contracted portion could be coded as non-agency. Also, if the district operates a child care program, that could be a community services goal. Coding to excluded goals or function codes reduces the total expenses in Part 1.
Review cost sharing between the district’s general fund and other funds or dependent charters. Are they using object 5750 to transfer program support costs or recording a fund transfer as payment for support costs? Using object 5750 will decrease costs in the general fund, thereby reducing total expenditures in Part 1.
Review expenditures coded to restricted “other” resources that are not included in the SACS software’s exemption list. Should they be in the formula? Are they restricted for a purpose that excludes their use for salaries and benefits of classroom staff (i.e. equipment, facilities, supplies only, staff development)? If so, manually removing them in column 4b would reduce overall expenses in Part I
A list of resource codes extracted as "reductions" in Column 4a and Line 13a
1100 3012 3013 3020 3031 3172 3175 3176 3177 3178 3185
3316 3326 3327 3372 3386 3411 3515 4036 4045 4046 4047
4048 4050 4123 4124 4410 5035 5037 5314 5315 5370 5451
5652 6010 6030 6140 6240 6300 6355 6385 6386 6512 7010
7126 7386
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9-12 SACS Software
Form ICR
Indirect Cost Pool (numerator)
General administrative costs applicable to the whole organization (e.g. payroll, accounting, etc)
Plant M&O/Facility Rents – Central Admin
Increase to pool = increase in rate
Base Costs (denominator)
Almost all remaining costs after identifying indirect costs (e.g. instructional, board/supt., etc)
Debt service, facility construction costs, capitalized equipment are excluded from base
Increase to base = decrease in rate
Part I – Salaries –
Plant services based on a percentage of Salaries.
General Admin and Centralized Data Processing salaries will auto populate based on Functions
7200-7700 with goals 0000 and 9000
Manually enter any admin salaries paid through a contract
Part II – Adjustments for Employment Separation Costs - Line A
Normal Separation costs are not allowable as direct costs to federal programs, but are allowable
as indirect costs.
Example – Title I Aide retires. The amounts paid to the aide at separation include regular
salary for the final pay period, plus normal separation costs for accumulated unused
leave.
On Line A, LEAs may enter any normal separation costs for state or federal restricted
programs that were charged to an unrestricted resource (0000–1999) in funds 01, 09, or
62 with functions 1000–6999 or 8100.
Once entered, these costs are removed from base costs and added to the indirect cost
pool in Part III.
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9-13 SACS Software
Form ICR
Part II – Adjustments for Employment Separation Costs – Line B
An entry is required
Abnormal or Mass Separation costs can’t be included in the indirect cost pool.
On line B, indicate amount of abnormal and mass separation costs charged to unrestricted
resources with functions 7200–7700.
If none, enter zero.
Costs listed will be moved from the indirect cost pool to base costs in Part III of the ICR
calculation.
Part II – Adjustments, Line B
Example 1 – Teacher in federal special education program accepts Golden Handshake
Because it is a federal program and this is an abnormal or mass separation cost, the
resource must be unrestricted:
01-0000-0-3901-5770-1110
No entry on line B since function was not 7200-7700
Example 2 - Employees in the accounting office are offered a two-month salary severance
package in exchange for voluntary termination of employment, and one accepts the offer.
Since this position is already being coded to an unrestricted resource, the costs of the
severance package can be charged to the employee's regular resource:
01-0000-0-2400-0000-7200
Enter amount on line B since function was 7200
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9-14 SACS Software
Form ICR
Part III – ICR Calculation
Carry-Forward Adjustment
After the fact adjustment for the difference between indirect cost rate approved for a
given year and actual % amount of indirect costs in that year
Subagreements
Sub-Agreements are now automatic since we began using object 5100 in 2007-08.
Federal guidelines provide that up to $25,000 of each subagreement may be included in
the indirect cost calculation and may be included in the costs on which indirect costs are
charged. You may charge up to $25,000 per subagreement to object code 5800 for
SACS to pull this into your calculation.
Part IV – Carry-Forward Adjustment
E. Optional allocation of negative carry-forward adjustment over more than one year
Where a negative carry-forward adjustment causes the proposed approved rate to fall
below zero or would reduce the rate at which the LEA could recover indirect costs to
such an extent that it would cause the LEA significant fiscal harm, the LEA may request
that the carry-forward adjustment be allocated over more than one year.
CDE will work with the LEA on a case-by-case basis to establish an approved rate
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9-15 SACS Software
Form ASSET
Unaudited Balance July 1
This will be pre-populated from your 2012-13 SACS Ending balance
Audit Adjustments/Restatements
You will populate this column from your audit report
If a decrease is needed, a negative number may be entered
Audited Balance July 1
This column will calculate by adding together the July 1 Balance and the Audit Adjustments.
Increases Column
Increases in capital assets are input as positive numbers.
Capital assets should be consistent with your 6xxx
Remember to include your assets from All Funds
Assets and Work in Progress should be tracked in QSS in Fixed Assets Maintenance
Work in Progress should be reviewed each year for correct amount in progress. If work is complete, move from Work in Progress to capital assets
Depreciation reports can be run in QSS in Fixed Assets Reports
Increases in accumulated depreciation are input as negative numbers
Amounts in the Increases column are added to the amounts in the Audited Balance July 1 column to arrive at the ending balance June 30 column.
Decreases Column
Decreases in capital assets are input as positive numbers.
Decreases in accumulated depreciation are input as negative numbers.
The amounts in the Decreases column are subtracted from the amounts in the Audited Balance July 1 column to arrive at the Ending Balance June 30 column.
For example, the original cost of equipment that is sold or otherwise disposed of is removed from the aggregate balance of equipment and is recorded as a positive number on the line for Capital Assets Being Depreciated: Equipment, in the Decreases column. The accumulated depreciation associated with the equipment disposed of is removed from the aggregate accumulated depreciation balance for equipment, and is recorded as a negative number on the line for Accumulated Depreciation for Equipment, in the Decreases column.
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9-16 SACS Software
Other Forms
Form L – Lottery
If there are dollar amounts in shaded areas, examine them to see whether they should be there
Form NCMOE
The amounts in sections I, II, III, and IV are mostly extracted and calculated; manual entry is only
allowed for a few applicable lines
Form GANN
Be sure an explanation is provided for each entry in adjustment column
Line C19 (Medicare amount) needs to be completed
Lines 26 – 31 (State Aid affected by flexibility provisions)
Data must be manually entered into the Adjustments columns
Line D10 should be zero
Check that line D12 is reasonable when compared to line 1(final prior year)
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9-17 SACS Software
Finishing
Technical Review Checklist (TRC)
Be sure to run the TRC for all types of data. At year-end close the two periods are Budget and
Unaudited Actuals.
If you have form dependency issues, see Attachment F- Form Dependencies in the SACS
software user guide. To avoid a cyclical CHK-DEPENDENCY exception, the dependent forms
should be opened and saved in the order listed in the "Dependent Forms" column.
All exceptions MUST be cleared prior to submission
F Fatal – must be corrected (explanation not allowed)
W / WC Warning / Warning with Calculation (explanation needed if data is correct)
O Optional (if data is correct, explanation is optional, but encouraged)
CDE will not accept comments such as “will correct by next period”
Export File for TCSOS
Must be “Official”
Printing
See Table of Contents for list of forms
Can print all or some from here
APPENDIX
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APPENDIX
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A-1 APPENDIX
Special Education Pupil Counts 2014-15
District
Belleview Elementary
7
Columbia Union 39
Curtis Creek 41
Jamestown Elementary
52
Sonora Elementary
51
Sonora Union High School
97
Soulsbyville School
44
Summerville Elementary
50
Summerville Union High School
97
Twain Harte-Long Barn
32
Big Oak Flat-Groveland
25
TOTALS 788
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A-2 APPENDIX
Indirect Cost Rates
Rates for Tuolumne County School Districts
Rates for Charter Schools
California Department of Education (CDE) - School Fiscal Services Division
2014–15 Restricted Indirect Cost Rates - Charter Schools Approved April 2014 by CDE based on 2012–13 standardized account code structure data
(New charter schools not yet on the list may use the 2014–15 statewide average rate of 5.69%)
Address questions, including on how the rates were determined, to [email protected], or call 916-322-1770.
County Code
District Code
School Code
Charter School Name (sorted by county-district-school code)
2014–15 Approved Rates
(for use with state and federal
programs, as allowable)
55 72363 0100099 California Virtual Academy @ Jamestown 5.69%
55 72413 0112276 Gold Rush Charter 5.35%
55 72413 5530191 Connections Visual and Performing Arts Academy 4.44%
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A-3 APPENDIX
Indirect Cost Rates
Rates for Food Service
For food service programs for fiscal year 2014–15, districts are limited to the lesser of:
Their CDE approved indirect cost rate (approved April 2014, based on 2012-13data)
or
5.69%
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A-4 APPENDIX
Common Coding Errors
SACS Minutes, February 2014 This document is Attachment A to the Standardized Account Code Structure (SACS) Forum meeting minutes for
February 5, 2014.
Common coding and reporting issues observed in 2012–2013 unaudited actuals data submissions
Issue Correct Procedure Reference
Incorrect use of unrestricted
or restricted resource codes in
funds other than the general
fund
A restricted resource code should be used for all restricted
funding, regardless of the fund in which it is reported.
Examples include proceeds of bonds and other debt
instruments to be used for specific capital outlay projects and
property taxes collected that may only be used to pay debt
service.
In addition, funding that does not meet the definition of
restricted should be reported in an unrestricted resource code.
An example is unrestricted funds set aside in Fund 17 or Fund
20.
CDE letter dated January
7,
2011, “New Requirements
for Reporting Fund
Balance in Governmental
Funds,” pages 11 and 12
Object 5100, Subagreements
for Services, not used
Object 5100 should be used to record payments to a third party
service provider that conducts all or part of an instructional or
support activity for which the local educational agency (LEA)
is responsible. The first $25,000 may be recorded using Object
5800.
Federal cost principles require that subagreements be excluded
from the indirect cost rate calculation and from eligible
program costs on which indirect costs are charged.
CDE letter dated
December 15, 2006,
“Indirect Cost and
Accounting Changes
Effective Beginning 2007–
08.”
California School
Accounting Manual
(CSAM) Procedure 330,
Object Classification
CSAM Procedure 915,
Indirect Cost Rate
Function 7700, Centralized
Data Processing Costs, not
used
Centralized data processing costs should be recorded to
Function 7700 and not to Other General Administration
Function 7200.
CSAM Procedure 325,
Function (Activity)
Classification, pages 29
and 30
Technology expenditures –
intangible assets
Software, such as enterprise reporting systems, whether
purchased or licensed, may meet the criteria to be considered
an intangible asset and reported in object 6400 or 6500 rather
GASB Statement 51,
Accounting and Financial
Reporting for Intangible
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A-5 APPENDIX
than object 5800 Assets
OPEB expenditures not
distributed per guidance in
CSAM (see also under
Indirect Costs, below)
OPEB expenditures charged to objects 3701 and 3702 are
allocated among all activities in proportion to total salaries or
FTEs in all activities.
CSAM Procedure 785,
Postemployment Benefits
Other Than Pensions
Debt refundings Debt refunding transactions should be recorded in the debt
service fund or other appropriate fund
PCRAF - Unrealistic or
incorrect allocation factors
for undistributed support
costs Example: FTE entered
for only one instructional
program, resulting in
allocation of all undistributed
costs to that program; or an
implausibly low number of
FTE per program, e.g. one
FTE for regular education; or
dollar amounts entered
instead of factors
To assure that costs are allocated on a consistent and standard
basis, allocation factors should reflect real counts of the
teacher FTEs, classroom units (square footage utilized), or
pupils transported in all instructional programs operated by the
LEA.
CSAM Procedure 910,
Program Cost Accounting
PCRAF - Allocation factors
entered for programs for
which there are no direct
costs
Undistributed support costs should normally only be allocated
to programs in which direct charged costs are incurred.
The PCR/PCRAF should not be used to allocate costs incurred
on behalf of other entities, such as charter schools, in lieu of
recording them correctly to Goal 7110 in the GL.
CSAM Procedure 910,
Program Cost Accounting
TRC explanations that are
meaningless or otherwise
unhelpful, or repetitive use of
the same explanation for
exceptions (e.g., “will be
corrected at 1st Interim”) to
which the explanation clearly
does not apply.
If the data is wrong, the LEA should correct the data before
submitting it. If the LEA believes the data is right, the LEA
should provide a meaningful explanation of why.
Revenue and expenditure accounts cannot be corrected in the
coming year because revenue and expenditure accounts are
closed out to fund balance at the end of each year. If the data is
wrong, correct the data before submitting it.
SACS User Guide and
TRC instructions
Indirect cost calculation:
Indirect cost pool
expenditures recorded
incorrectly, resulting in an
inappropriate indirect cost
rate:
1) Administrative costs
1) Especially for small school districts and charter schools,
administrative costs should be allocated between general
CSAM Procedure 325,
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A-6 APPENDIX
charged entirely to a general
administration function when
other functions benefit from
those expenditures.
2) Audit costs not charged to
the appropriate function.
3) Abnormal or mass
separation costs not excluded
from the indirect cost pool.
4) OPEB costs charged
entirely to a general
administration function.
5) Insurance, legal and
communications costs
charged entirely to a general
administrative function.
Communications costs
charged almost entirely to
Function 8100.
6) Incorrect use of Function
7700, Centralized Data
Processing, for costs other
than those of a general
administrative nature
administration, board and superintendent (functions 71XX),
school administration (Function 2700), and/or other
instructional support functions (functions 2XXX), as
necessary. For salaries, standard distributions may be used in
lieu of time documentation.
2) Audit costs should be charged to either Function 7190 or
7191, depending on whether LEA is subject to federal Single
Audit provisions.
3) Abnormal or mass separation costs charged to a general
administration function should be excluded by entering the
appropriate amount in Part II, Line of the Indirect Cost Rate
Worksheet, Form ICR.
4) OPEB expenditures are allocated among all activities in
proportion to total salaries or FTEs in all activities.
5) Bus and food service vehicle insurance should be charged to
functions 3600 and 3700, respectively. Pupil insurance should
be charged to Function 1000.
Legal costs should be recorded primarily to Function 7100,
unless the costs are associated specifically with the business
office, purchasing or personnel matters. Settlements should be
charged to Function 7100.
Communications costs such as telephone, cell phone, 2-way
radio, and internet service should be charged to the functions in
which those services are used.
6) Costs on behalf of instructional programs should be reported
in Function 1000, Instruction or Function 2420, Instructional
Library, Media and Technology. Costs should be allocated
between agency-wide and instructional functions as necessary.
If all data processing costs are initially accumulated in
Function 7700, instructional costs should be reclassified to the
appropriate function(s) using Object 5710.
Function Classification
CSAM Procedure 785,
Postemployment Benefits
Other Than Pensions
CSAM Procedure 905,
Documenting Salaries and
Wages
CSAM Procedure 910,
Program Cost Accounting
CSAM Procedure 915,
Indirect Cost Rate
CDE letter dated
12/15/2006, “Indirect Cost
and Accounting Changes
Effective Beginning 2007-
08.”
Charter school
reporting/coding:
1) Salaries reported without
corresponding benefits.
2) Salaries and corresponding
benefits not recorded to the
same resource, goal, and/or
function.
3) Management company
fees lump-sum charged to one
1) Employee benefits should be recorded separately from the
associated salary and in one or more appropriate benefit object
codes.
2) Salary and benefits for the same employee should normally
be recorded to the same resource, goal, and function.
3) Fees paid for activities other than school or general
administration should be charged to the appropriate
CSAM Procedure 325,
Function Classification
CSAM Procedure 785,
Postemployment Benefits
Other Than Pensions
CSAM Procedure 905,
Documenting Salaries and
Wages
CSAM Procedure 910,
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A-7 APPENDIX
function, such as 7200.
4) Depreciation expense
lump-sum charged to
Function 7200 (Fund 62)
5) Indirect cost pool
expenditures coded
incorrectly; misconception
that indirect cost rate does not
apply.
function(s), such as instructional administration (Function
2100) or pupil services (functions 3000 –3999). Fees paid for
fiscal and business services are partially attributable to school
administration and should be allocated appropriately. In lieu of
a documented distribution, these costs may be charged 70% to
school administration and 30% to general administration.
4) Depreciation expense should be charged to the functions
that benefit from the asset for which depreciation is charged.
For example, depreciation on a school building that consists of
regular education classrooms should be charged to Goal 1110,
Function 1000.
5) Indirect cost rates are calculated for charter schools that
report separately using SACS, even if an indirect cost rate is
not used.
Program Cost Accounting
CSAM Procedure 915,
Indirect Cost Rate
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A-8 APPENDIX
Accounting
SACS Minutes, May 2014 This document is to the Standardized Account Code Structure (SACS) Forum meeting minutes for May 6, 2014.
Deferred Maintenance Fund and Contributions to the Restricted Maintenance
Account (RMA)
Issue:The repeal of EC 17584 relating to the former Deferred Maintenance Program contribution has created an unintended consequence for LEAs who choose to continue to use the Deferred Maintenance Fund, because their "contributions" to that fund no longer count toward their 3% Restricted Maintenance Account (RMA) requirement per EC 17070.75.
Background. and. pertinent information:Temporarily under categorical flexibility, and now permanently under the LCFF, there is no longer a Deferred Maintenance Program entitlement or a requiredmatching contribution. However, although the Deferred Maintenance Program is repealed, statute allowing the Deferred Maintenance Fund has not been repealed, so CDE has kept the fund open for those LEAs that prefer to continue using it.
The Deferred Maintenance Fund, Fund 14 in SACS, is classified as a special revenuefund. This was appropriate historically because the fund existed to account for funding restricted to the Deferred Maintenance program (the Deferred Maintenance entitlement, plus the LEA's required matching contribution).
GAAP specifies that use of a special revenuefund is appropriate only if a substantial portion of the fund's inflows are restricted or committed revenue sources and, further, only ifthose revenue sources are expected to continue. GAAP also specifies that the restricted or committed revenue source that justifies the use of the special revenue fund must be recognized as revenuein the special revenue fund, not as an interfund transfer.
In accordance with GAAP, CDE has advised that LEAs that wish to continue to use Fund 14 should therefore commit a portion of their LCFF revenues to the purposes of deferred maintenance and should account for the committed revenues in Fund 14 using Object 8091. (As an aside, the reason for using Object 8091 rather than some other revenue account is that it varies from LEA to LEA whether LCFF revenues derive from property taxes, state aid, or a combination of the two, so Object 8091 remains the best way to account for the receipt of LCFF revenues in the general fund and then to shift them to Fund
14.)
Mechanically, using Object 8091 to record committed revenues in Fund 14 means those committed amounts don't get counted toward the 3% contribution to the Restricted Maintenance Account (RMA) as was allowed by EC 17070.75. EC 17070.75 allowed that a district's contributionto its RMA over and above 2 1/2 percent could count toward its Deferred Maintenance contribution as required by EC 17584. Technically EC 17070.75 still does allow this, even though EC l7584 is repealed.
17070.75 ... (b) In order to ensure compliance with subdivision (a) and to encourage school districts to maintain all buildings under their control, the board shall require an applicant school district to do all of the following prior to the approval of a project:
(1) Establish a restricted account within the general fund of the school district for the
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A-9 APPENDIX
Accounting
exclusive purpose of providing moneys for ongoing and major maintenance of school buildings...
(b)(2)(A) ... Annual deposits to the [RMA] ... in excess of 2 1/2 percent of the school district general fund budget may count towards the amount of funds required to be contributed by a school district in order to receive apportionments from the State School Deferred Maintenance Fund pursuant to Section 17584 to the extent that those funds are used for purposes that qualify for funding under that section.
Historically, before flexibility and before LCFF, CDE advised LEAs to contribute their entire 3% to the
RMA Resource 8150 in the general fund, and then make their Deferred Maintenance contribution as
an interfund transfer from that resource. This kept the 3% RMA contributionintact for purposes of
"scoring" it. Now that EC l7584 is repealed and there is no Deferred Maintenance program or
required contribution any longer, and now that amountsthat districts choose to commit to the
purposes of deferred maintenance in order to justify the use of Fund 14 (which use is not required
by statute or by GAAP) must be recognized as revenue in Fund 14 rather than as interfund
transfers, those committed amounts aren't captured in what gets counted toward the RMA.
LEAs' reasons for continuing to account for deferred maintenance-type expenditures in Fund 14
rather than in the general fund are probably some combination of:
a) Reluctance to depart from past practice.
b) To minimize general fund expenditures in order to minimize reserve requirements.
c) (Maybe) to keep periodic, quasi-capital outlay expenditures out of the general fund to avoid
skewing general fund trends. This is a valid reason for using a capitalproject fund, which -
arguably -the Deferred Maintenance Fund now resembles, since it no longer has a
restricted special revenue source.
CDE does not anticipate changing its guidance on how to account for amounts LEAs commit to purposes of deferred maintenance in order to justify the continued use of Fund 14 because that guidanceis based on GAAP. However, CDE wants ESSCO members to be aware of the issue, to know their options, and to know CDE's thinking.
CDE is not recommendinga particular option at this time. CDE's very preliminary
consideration of possible options:
1) Change statute to allow amounts that LEAs commit to the purposes of deferred maintenance, and deposit in their Deferred Maintenance fund, to count toward the RMA. Downside: Tills commits to statute something that might better be handled administratively. (Could it be handled administratively?)
2) Reclassify the Deferred Maintenance fund to be a capital projects fund rather than a special revenue fund. Capital projects funds are not subject to the requirement that a substantial portionof the fund's inflows must be restricted or committed revenue sources, nor that the fund's inflows must be recognized as revenues in that fund. Interfund transfers (from Resource 8150, like before) would be allowable per GAAP. CDE speculated that the existing Fund 40 capital projects fund might suffice for this purpose. Downside: Hard to justify how expenditures from a capital projects fund are
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A-10 APPENDIX
"maintenance" (the purpose of the RMA).
3) Change statute to eliminate the "one-size fits all" RMA requirement altogether.
Downside: Not likely.
4) LEAs can use interfund transfers for assigned amounts over and above the committed amount necessary to justify the special revenue fund. These interfund transfers could come from Resource 8150. Downside: Not likely that LEAs will assign extra amounts to deferred maintenance, over and above the amounts they commit, just to makethe 3% RMA whole.
5) Have LEAs make deferred maintenance expenditures from the general fund, as is
wholly allowableand as many LEAs do.
6) Change EC 17070.75 (b) (l) to eliminate "within the general fund of the school district"
so amounts a district depositsin the RMA inany fund would "count" towardits 3%
contribution.
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A-11 APPENDIX
Accounting
Local Control Funding Formula (LCFF)- Accounting FAQs
In the standardized account code structure (SACS), will all the LCFF funding be accounted for as an unrestricted resource?
Yes. For 2013-14, all LCFF funding will be accounted for using Resource 0000, Unrestricted.
What revenue object code should be used to record the state aid portion of the LCFF?
LEAs, including charter schools, should use Object 8011, LCFF State Aid- Current Year. Prior year
adjustments should be recorded to Object 8019, LCFF/Revenue Limit State Aid- Prior Year.
How can expenditures be coded in 2013-14 to address LCFF state priorities?
Funding is provided in an unrestricted resource code. LEAs may define local codes to track expenditures i f t h e y wish.
Does the LCFF result inany modification or elimination of the "Minimum Classroom Compensation" requirements of EC Section 41372?
No.
Will the recommended level for the reserve for economic uncertainties be increased?
The regulations regarding the recommended reserve for economic uncertainties remain in place under
the LCFF (California Code of Regulations Title 5, Section 15449 ).
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A-12 APPENDIX
Accounting
Which SACS resource codes and object codes are obsolete as a result of the LCFF?
The following resource codes are obsolete beginning 2013-14 (last funded fiscal year 2012-13):
1300 Class Size Reduction K-3 (optional resource)
2200 Continuation Education
2400 Juvenile Court/County Community Schools
2410 Juvenile Court
2420 County Community Schools
2430 Community day Schools
7090 Economi Impact Aid (EIA) - State Compensatory Education (SCE)
7091 Economi Impact Aid (EIA) - Limited English Proficient (LEP)
7250 School Based Coordinated Program (SBCP)
7230 Transportation: Home to School
7235 Transportation: School Bus Replacement
7240
Transportation: Special Education (Severely Disabled/Orthopedically Impaired)
The last fiscal year these resource codes will be available in the validation tables is 2015-16, to
allow LEAs time to spend 2012-13 balances. LEAs should plan to spend carried over balances
before spending unrestricted funding on the same programs or services.
The following object codes are obsolete for 2013-14 actuals:
3801 PERS Reduction, certificated positions
3802 PERS Reduction, classified positions
7615 From General, Special Reserve, and Building Funds to Deferred Maintenance Fund
8015 Charter General Purpose Entitlement - State Aid
8092 PERS Reduction Transfers
8425 Year-Round School Incentive
8915 To Deferred Maintenance Fund from General, Special Reserve, and Building Funds
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A-13 APPENDIX
Accounting
The following object code is obsolete beginning 2014-2015:
Although Class Size Reduction (CSR) funding was consolidated into the LCFF, deferral funding
was dispersed in 2013-14. Therefore, the revenue object code was left open to allow LEAs to
record the CSR revenue.
Can LEAs report activity in obsolete resource codes and associated obsolete code combinations for 2013-14 year-end reporting?
Activity associated with 2013-14 funding received that has, through 2013-14 second interim, been
reported using resource codes and other code combinations that are now obsolete due to the
consolidation of categorical funding into the LCFF should be reported in the correct resource code, e.g.,
Resource 0000, and revenue object codes, e.g., Object 8011, beginning with estimated actuals data in the
SACS2014 software budget release. LEAs should not wait to make these adjustments in the unaudited
actuals data.
The exception is that expenditures associated with 2012-13 carried over balances of now-obsolete
resource codes should continue to be reported in those resource codes. Those resource codes will be
available through 2015-16 for this purpose.
Note that the use of obsolete object codes starting with the 2013-14 estimated actuals will result in a
fatal technical review check exception (fund x resource).
Can LEAs make contribution to obsolete resource codes to cover expenditures made in excess of the 2012-13 carryover amounts?
No. Expenditures made in excess of the available carryover should be reclassified to another appropriate
resource code.
How are LCFF revenues that have been committed to the purposes of Fund 11, Adult Education Fund, or Fund 14, Deferred Maintenance Fund, recorded now that categorical flexibility funding is consolidated into the LCFF?
Amounts of LCFF revenue that LEAs have formally committed to the purposes of Fund 11 or Fund 14 will
now be recorded as an LCFF transfer using Object 8091, LCFF Transfers- Current Year. Object 8099,
LCFF/Revenue Limit Transfers- Prior Years, is used to record transfers associated with prior year
adjustments.
Can Object 8091 continue to be used to transfer funds to Resource 6500, Special Education?
No. Transfers of unrestricted LCFF funding to Resource 6500 should be reported as a contribution using Object 8980, Contributions from Unrestricted Revenues. LEAs should no longer record this transfer using Object 8091, LCFF Transfers.
8434 Class Size Reduction, Grades K-3
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A-14 APPENDIX