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The Other FundsFunds 21, 41, 60, 72, 73, 80 & 90
WASBO Accounting ConferenceNew Business Office Staff Track
Brian KahlDPI School Finance Auditor
Bob SoldnerSFS Team Director
March 2014
2
Agenda
• The Main Funds• The Other Funds– 21: Special Revenue Trust Fund– 41: Capital Expansion Fund– 60: Agency Fund– 72: Private Purpose Trust Fund– 73: Employee Benefit Trust Fund– 80: Community Service Fund– 90: Package & Cooperative Program
Fund"The Other Funds" - WASBO Acct Conference March 2014
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The Main Funds
• General Fund• Special Education• Debt Service– Non-Referendum– Referendum
• Capital Projects• Food Service
F-10F-27
F-38F-39F-49F-50
"The Other Funds" - WASBO Acct Conference March 2014
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The Other Funds
• Special Revenue Trust Fund• Capital Expansion Fund• Agency Fund• Private Purpose Trust Fund• Employee Benefit Trust• Community Service Fund• Package & Cooperative Program
Fund– Packaged Services (CESA)– Other Package & Coop Pgm
F-21
F-60
F-80
F-90
F-73
F-41
F-91F-99
"The Other Funds" - WASBO Acct Conference March 2014
F-72
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Fund 21
• Account for trust funds that can be used for district operations
• Sources– Gifts– Donations from Private Parties
• Expended pursuant to donor specifications, if any
• May carry a fund balance
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 21
How to use this fund?• District or staff controlled
“activity” accounts• Fund raisers• Targeted donations• Tournaments or Competitions
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 21
• Permanent Fund– Should be used to report resources
that are legally restricted to the extent that only earnings and not principal, may be used for purposes that support the district’s programs
– Resources should benefit the government
– Need to keep the corpus intact"The Other Funds" - WASBO Acct Conference March 2014
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Fund 21
District/Staff “activity” funds• Activity groups where staff
decides how to raise funds and how to appropriate them– Athletic Fundraisers– School Fundraiser (Example –
Field Trips)– Band Uniforms– School Musical
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 21
Why would you use Fund 21 instead of Fund 10?• Shared Cost (Deductible Receipt
if in Fund 10)• Carry balances from year to
year• Comply with donor wishes if
any restrictions placed on use of funds
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 21
Accounting Transactions• Ledger Accounts– Revenues– Expenditures
• Balance Sheet Accounts– Assets– Liabilities– Equity (Fund Balance)
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 21
More information:• When to Use Fund 21
http://sfs.dpi.wi.gov/files/sfs/doc/fund21.doc
• WIAA and Other Tournaments and Competitions
http://sfs.dpi.wi.gov/files/sfs/doc/tournaments_hosted.doc
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 60
Agency Fund• Used primarily to account for
assets held by the district on behalf of pupil organizations
• Parent organization funds may be accounted for here– May not be a separate 501(c)(3)
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 60
Agency Fund• Only balance sheet accounts
(assets & liabilities) are reported in Budget and Annual reports
But…• Records of receipts and
disbursements must be maintained locally and will be examined during audit
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 60
Pupil Organizations• Funds are held by the district for
the benefit of the student organizations– District has a fiduciary responsibility
• Students are the decision makers on how to raise money and how to spend it– Staff advisers only advise, do not
decide"The Other Funds" - WASBO Acct Conference March 2014
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Fund 60
Pupil Organizations• Student Council• Class of 20XX• National Honor Society• Yearbook• Drama Club• Foreign Language Club• Other Clubs
"The Other Funds" - WASBO Acct Conference March 2014
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Not Fund 60• Activities where staff make the
decisions are District Activities and accounted for elsewhere
• Examples:– Athletics– Musical– Band Uniforms– Field Trips– Shop Class– Sunshine Club / Coffee Fund*
• Should NOT appear anywhere on the district’s books. These are not district funds.
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 60
Accounting Transactions• Assets– 711000: Cash– 712000: Investments
• Liabilities– 814000: Due to Student
Organizations• Equity– None
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 60
Parent Organizations• District may establish agency funds for
parent organizations– Bank accounts in the name of the district– Same policies/procedures as for student
organizations
• Liability Acct 818000: Due to Parent Organizations
• Parent organizations may not use the district’s tax ID number
• Parent organizations may not be a separate 501(c)(3)"The Other Funds" - WASBO Acct Conference March 2014
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Fund 60
More information:
• Agency Fund Guidelines documenthttp://sfs.dpi.wi.gov/files/sfs/doc/stud_acct.doc
• Audit Program for Pupil Activity Accounts http://sfs.dpi.wi.gov/files/sfs/pdf/student_activity_funds.pdf
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 41
Capital Expansion Fund• Projects financed with a tax levy per
Wis. Stats. 120.10(10m)– Levy is within the Revenue Limit
• Restricted to capital expenditures related to buildings and sites– Not equipment– Not furnishings
• Requires approval at Annual Meeting"The Other Funds" - WASBO Acct Conference March 2014
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Fund 41
Eligible expenditures defined:• For acquiring and remodeling
buildings and sites, and• Maintenance or repair
expenditures that• Extend or enhance the service
life of building, building components, sites and site components"The Other Funds" - WASBO Acct Conference March 2014
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Fund 41
Why use Fund 41?• Allows for depreciation of
expenses over length of time• In year of spending - Reduces
shared costs in aid formula– Can reduce the impact of negative
tertiary aid for districts in that position
– Smoothes out aid for positively aided districts.
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 41
Disadvantage• Restricts use of limited
revenues to qualifying capital expansion projects– Cannot be redirected to use for
general operations or routine maintenance
• Creates additional accounting / reporting requirements
"The Other Funds" - WASBO Acct Conference March 2014
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Yr Levy Expend. Amortized Expenditures Total Amort.
1 $105,000 $100,000 $100,000 $100,0002 $105,000 $100,000 $50,000 $50,0003 $105,000 $100,000 $50,000 $33,333 $83,3334 $105,000 $100,000 $33,333 $25,000 $58,3335 $105,000 $100,000 $33,334 $25,000 $20,000 $78,3336 $0 $25,000 $25,000 $20,000 $5,000 $50,0007 $0 $0 $25,000 $20,000 $5,000 $50,0008 $0 $0 $20,000 $5,000 $25,0009 $0 $0 $20,000 $5,000 $25,000
10 $0 $0 $5,000 $5,000T $525,000 $525,000 $100,000 $100,000 $100,000 $100,000 $100,000 $25,000 $525,000
Fund 41Amortizing Expenditures Over Time
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 41A Capital Expansion document and PowerPoint can be found on the finance team page in the WUFAR link: http://sfs.dpi.wi.gov/sfs_wufar
Click on: Accounting Issues and Coding Examples
or go directly to:http://sfs.dpi.wi.gov/files/sfs/doc/cap_expans_publish.doc
http://sfs.dpi.wi.gov/files/sfs/ppt/cap_expans_publish.ppt
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 72
Private Purpose Trust Fund• Account for gifts and donations
specified for the benefit of private individuals and organizations not under the control of the school board– Board acts as Trustee of account– Example: Scholarship Fund– Expenditures are made pursuant to
donor specifications"The Other Funds" - WASBO Acct Conference March 2014
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Fund 73
Employee Benefit Trust Fund• Used to account for resources held
in trust for formally established defined benefit plans, defined contribution plans, or employee benefit plans
• Must be legally established in accordance with state statutes, federal law, and IRS requirements
• Legally irrevocable trust
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 73
Employee Benefit Trust Fund• Created as a mechanism for
districts to fund post-employment benefit obligations
• Districts not required to use this– May opt to “pay as you go,” however,
that does not help reduce the long-term liability
• Requires actuarial study to determine funding levels
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 73
Employee Benefit Trust Fund• District makes payments to the
trust from the governmental funds (Funds 10, 27, 50, and 80) to fund annual obligations.
• Fund 73 pays the retiree benefits
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 73
Why use Fund 73?• To reduce the district’s long-
term unfunded obligations.
• Costs to Special Education Fund are aidable up to the ARC if one of the three criteria are met.
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 73
More information:• Employee Benefit Trust Fund webpage
http://sfs.dpi.wi.gov/sfs_emp_benefit_trust_fund
• Employee Benefit Fund Requirements webpagehttp://sfs.dpi.wi.gov/files/sfs/doc/EBFRequirements.doc
• Fund 73 OPEB Transaction Accounting Samples
http://sfs.dpi.wi.gov/files/sfs/Accounts%20to%20use%20for%20Fund%2073%20trust.doc
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 80
• 2013 Wisconsin Acts 20 & 46– District Levy Authority is Limited in
2013-14 & 2014-15– Hold a Referendum to Exceed Levy
Limit – Reporting Requirements• District’s Website• District Complete DPI Fund 80 Survey• DPI Report to Legislature (12/1/14)
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 80
Community Service Fund• Used to account for all activities
that have the primary function of serving the community (not public school programs)
• District may adopt a separate levy, outside revenue limits, for this Fund– Does not impact aid calculation
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 80
Statutory References• School Board authority to
establish– Wis. Stats. 120.13(19)
• Budget reporting requirements– Wis. Stats. 65.90
• Adoption of a separate levy– Wis. Stats. 120.10(8)– Wis. Stats. 120.12(3)
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 80
Community Service Fund• Access to activities cannot be
limited to pupils enrolled in the district’s K-12 education programs
• Excluded are any academic subjects and extra-curricular activities available only to pupils enrolled in the district
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 80
Community Service Fund• Examples:– Community softball leagues– Elderly nutrition programs– Non-Special Educ pre-school– Day care services– Evening community swimming
and pool operations– Adult education
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 80
Allowable Expenditures• Non-instructional – May include cost allocations for
salaries, benefits, purchased services, etc.
– Directly related to the activity included in Fund 80
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 80
Questions to Ask• Is the program outside the usual
instructional program?• Is the program available to
everyone in the community (age appropriate)?
• Is the program fee supported?If “YES,” then the program may be appropriately included in the Community Service Fund
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 80
Do NOT recommend including• District/Building administration• Facilities used by the instructional
or extra-curricular program• Welfare/safety expenditures
related to K-12 instructional or extra-curricular program– Police Liaison Officers– Crossing Guards
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 80
Pro-rating of other costs• We do not recommend costing
these costs in Fund 80 UNLESS they are directly associated and fully documented:– Custodial costs– Security costs– Utility costs
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 80Key Question to Ask
• If the program in Fund 80 ended, would some costs shift to Fund 10?– Custodial costs: If Fund 80 program
ended, would there be a reduction in custodial hours?• If YES, then appropriate for Fund 80.
– Utilities: Would utilities be reduced if the program ended, or shifted to Fund 10?• If REDUCED, then appropriate for Fund 80.
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 80
Construction and Debt Service• Recommend not charging
construction or related debt service costs for education facilities even if it may be used by the community– Exception: facility is not used for
instructional purposes at all, only for community recreation.
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 80
Infrastructure Costs• Recommend that construction
and/or infrastructure maintenance costs not be accounted for in Community Service Fund even if used at times by the community
• Examples– Sidewalks– Parking Lots
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 80
More information:• Community Service Fund
Information webpagehttp://sfs.dpi.wi.gov/sfs_comm_serv
• Community Service Fund presentation
http://sfs.dpi.wi.gov/files/sfs/ppt/comm_ser_fnd.ppt
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 90
Package and Cooperative Program Fund• Used to account for
expenditures made by a host district for programs and services offered to other districts– Fund 91: Through a CESA– Fund 99: Others
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 91
Host District• CESA acts as fiscal agent for the
districts in the cooperative– Other districts pay CESA their
share– Host district pays CESA for its
share• Expenditure to F-10
– CESA reimburses host district for all program expenditures
– No fund balance allowed"The Other Funds" - WASBO Acct Conference March 2014
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Fund 99Fiscal Agent District• District that acts as the fiscal agent
for the districts in the cooperative– Other districts pay host district
their share– Host district transfers from F-10
its share of costs• Revenue to F-99• Expenditure to F-10
– Pays all expenditures for program– No fund balance allowed
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 99
Examples of Cooperative Services• Hockey Co-op• Swim Team Co-op• Transportation Services• Business Education Program
• REQUIRES completion of a “66:30 Agreement”
Wis. Stats. 66.0301"The Other Funds" - WASBO Acct Conference March 2014
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Fund 90
Package & Cooperative Services• NOTE: Shared Special
Education services are recorded in F-27 not in F-90.
"The Other Funds" - WASBO Acct Conference March 2014
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Fund 90
More information:• Cooperative Service
Agreement 66.0301 webpagehttp://sfs.dpi.wi.gov/sfs_coop_agree
"The Other Funds" - WASBO Acct Conference March 2014
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THANK YOU!
Questions?
Contact Information Bruce Anderson, Consultant 608-267-9707 Carey Bradley, Consultant 608-267-3752 Karen Kucharz, Consultant 608-266-3464 Brian Kahl, Auditor 608-266-3862 Gene Fornecker, Auditor 608-267-7882 Michele Gundrum, Auditor 608-267-9218 Erin Fath, Asst Director 608-267-9209 Bob Soldner, Director 608-266-6968
"The Other Funds" - WASBO Acct Conference March 2014