WASBO New School Administrators & Business
Support Staff WorkshopAugust, 2007
Wisconsin Wisconsin Department of Department of
Public InstructionPublic Instruction
ACCOUNTINGACCOUNTINGTRANSACTIONSTRANSACTIONS
WUFAR 101 WUFAR 101 WWisconsin isconsin UUniform Financial niform Financial
AAccounting ccounting RRequirementsequirements
It is a multi-dimensional reporting system that can also be used as an accounting system
Not required accounting, but required reporting
Always used in conjunction with the Budget and Annual Reports
Download off website http://dpi.wi.gov/sfs/wufar.html
WUFAR Account WUFAR Account FormatFormat
Fund Location Object/ Function Program/
Source Project
---------------------------------------------------------------- XX XXX XXX XXXXXX
XXX
Most of the commercial software used in districts will display account codes in this order. In DPI reporting you will see the function number preceding the object or source. DPI reporting does not require location detail.
Wisconsin Uniform Financial Wisconsin Uniform Financial Accounting Requirements - Accounting Requirements - cont.cont.
Code numbers are arranged in hierarchical order. A zero (0) in any position of a code represents a total of more detailed account codes.
The following is an example of a hierarchy in the source dimension:Fund Function Description 10R 000000 210 Taxes10R 000000 240 Payment for Services10R 000000 260 Non-Capital Sales10R 000000 270 School Activity Income10R 000000 280 Earnings on Invest10R 000000 290 Other Local Sources10R 000000 200 Total Local Revenue
Wisconsin Uniform Financial Wisconsin Uniform Financial Accounting Requirements – Accounting Requirements – contcont
Code numbers are arranged in hierarchical order. A zero (0) in any position of a code represents a total of more detailed account codes.
The following is an example of a hierarchy in the expenditure dimension:
Fund Function Description 10E 120000 100 Salaries10E 120000 200 Employee Benefits10E 120000 300 Purchased Services10E 120000 400 Non-Capital Objects10E 120000 500 Capital Objects10E 120000 900 Other Objects10E 120000 000 Total Regular Curriculum
FUND:FUND: A fiscal and accounting entity with A fiscal and accounting entity with
a self-balancing set of accounts…a self-balancing set of accounts…which are segregated for the which are segregated for the purpose of carrying on specific purpose of carrying on specific activities in accordance with activities in accordance with special regulations, restrictions, or special regulations, restrictions, or limitationslimitations
FUNDFUND STAND ALONE ACCOUNTING ENTITY
BALANCE SHEET, REVENUES AND EXPENDITURES FOR EACH FUND
WITHIN FUND, “DEBITS” MUST EQUAL “CREDITS” (the fund must be self-balancing)
CHANGE IN FUND BALANCE EQUALS DIFFERENCE BETWEEN FUND REVENUES AND EXPENDITURES
FUNDFUND
ENDING FUND BALANCE MINUS BEGINNING FUND BALANCE = REVENUES MINUS EXPENDITURES
MORE REVENUES THAN EXPENDITURES MEANS MORE FUND BALANCE AT END OF YEAR
GENERAL FUNDGENERAL FUND
FUND 10FUND 10
FINANCIAL TRANSACTIONS FINANCIAL TRANSACTIONS RELATING TO CURRENT RELATING TO CURRENT OPERATIONS NOT REQUIRED OPERATIONS NOT REQUIRED TO BE ACCOUNTED FOR IN TO BE ACCOUNTED FOR IN OTHER FUNDSOTHER FUNDS
SPECIAL PROJECTS SPECIAL PROJECTS FUNDSFUNDS
FUND 21GIFTS AND DONATIONS RECEIVED FROM PRIVATE PARTIES THAT CAN BE USED FOR DISTRICT OPERATIONS
FUND 23ANY REMAINING TEACH FUND BALANCE BEING USED TO MAKE PAYMENTS ON A TEACH LOAN
FUND 27SPECIAL EDUCATION AND RELATED SERVICES FUNDED WHOLLY OR IN PART WITH STATE OR FEDERAL SPECIAL EDUCATION AID
FUND 29SPECIAL REVENUE K-12 INSTRUCTIONAL PROGRAMS NOT REQUIRED TO BE REPORTED IN OTHER SPECIAL REVENUE FUNDS
DEBT SERVICE FUNDSDEBT SERVICE FUNDS
FUND 38Repayment of debt issues that were either; not authorized by school board resolution before August 12, 1993, or incurred without referendum approval after that date.
FUND 39Repayment of debt issues that were either; authorized by school board resolution before August 12, 1993, or approved by referendum.
CAPITAL PROJECTS FUNDSCAPITAL PROJECTS FUNDS
FUNDS 41, 48 AND 49FUNDS 41, 48 AND 49
RECORDING EXPENDITURES FINANCED RECORDING EXPENDITURES FINANCED THROUGH BONDS, PROMISSORY THROUGH BONDS, PROMISSORY NOTES, STATE TRUST FUND LOANS, NOTES, STATE TRUST FUND LOANS, LAND CONTRACTS OR TAX LEVY LAND CONTRACTS OR TAX LEVY (EXPANSION FUND OR TIF(EXPANSION FUND OR TIF))
FOOD SERVICE FUNDSFOOD SERVICE FUNDS
FUND 50
ACCOUNT FOR THE DISTRICT’S FOOD SERVICE ACTIVITIES
ACTIVITIES RELATING TO PUPIL AND ELDERLY FOOD SERVICE ACTIVITIES
AGENCY FUNDAGENCY FUND
FUND 60
ACCOUNT FOR ASSETS HELD BY THE DISTRICT FOR PUPIL ORGANIZATIONS.
ONLY BALANCE SHEET ACCOUNTS FOR THIS FUND ARE REPORTED IN THE BUDGET AND ANNUAL REPORTS.
TRUST FUNDSTRUST FUNDSASSETS HELD BY THE DISTRICT IN A TRUSTEE CAPACITY FOR INDIVIDUALS, PRIVATE ORGANIZATIONS, OTHER GOVERNMENTS AND/OR OTHER FUNDSFUND 72ACCOUNTS FOR GIFTS AND DONATIONS SPECIFIED FOR THE BENEFIT OF PRIVATE INDIVIDUALS AND ORGANIZATIONS NOT UNDER THE CONTROL OF THE SCHOOL BOARD
FUND 73ACCOUNTS FOR RESOURCES HELD IN TRUST FOR FORMALLY ESTABLISHED DEFINED BENEFIT PENSION PLANS, DEFINED CONTRIBUTION PLANS OR EMPLOYEE BENEFIT PLANS
FUND 76ACCOUNTS FOR NON-DISTRICT PORTION OF INVESTMENT POOL SPONSORED BY THE DISTRICT
COMMUNITY SERVICE COMMUNITY SERVICE FUNDSFUNDS
FUND 80ACTIVITIES WHERE THE PRIMARY FUNCTION IS TO SERVE THE COMMUNITY AND ARE OUTSIDE THE REGULAR AND EXTRACURRICULAR PROGRAMS FOR STUDENTS
PACKAGE AND COOPERATIVE PROGRAM FUNDS
MULTIDISTRICT PROJECTS FOR WHICH IT IS NECESSARY TO KEEP A SEPARATE RECORD OF ACTIVITY SO THAT PARTICIPANT DISTRICTS’ SHARE CAN BE DETERMINED
FUND 91EXPENDITURES MADE BY A HOST DISTRICT FOR PROGRAMS MADE AVAILABLE TO OTHER DISTRICTS THROUGH A CESA
FUND 93CONSORTIA PROGRAMS FUNDED WITH LOANS FROM THE TEACH WISCONSIN BOARD
FUND 99ALL OTHER TYPES OF COOPERATIVE INSTRUCTIONAL FUNDS- NEVER REPORT SPECIAL EDUCATION
SOURCE & OBJECT SOURCE & OBJECT
The Source dimension is used to classify revenues and other fund sources by their origins.
The Object dimension is used to identify the service or commodity used in accomplishing a function.
REVENUE SOURCESREVENUE SOURCES
REVENUE CODING: 2 QUESTIONS
“WHO’S PAYING THE MONEY?”
“WHAT IS IT FOR?”
REVENUE CODINGREVENUE CODINGSOURCE CODESSOURCE CODES
LOCAL (SOURCE 200) A WI DISTRICT (SOURCE 300)
DISTRICT OUTSIDE WI (SOURCE 400) INTERMEDIATE EDUCATIONAL AGENCY (SOURCE
500) STATE AGENCY (SOURCE 600) FEDERAL AGENCY (SOURCE 700) OTHER FINANCING (SOURCE 800) OTHER REVENUES (SOURCE 900)
EXPENDITURE OBJECTSEXPENDITURE OBJECTS
NORMAL RULE:
EXPENDITURES ARE CHARGED TO THE FISCAL PERIOD WHEN THE SERVICES ARE PROVIDED, SUPPLIES ARE USED OR EQUIPMENT IS ACQUIRED.
OBJECT CODING OBJECT CODING
MOST-USED OBJECT CODES– Salaries (100 Objects)– Fringe Benefits (200 Objects)– Purchased Services (300 Objects)– Non-Capital Objects (400 Objects)– Capital Objects (500 Objects)– Debt Retirement (600 Objects)
FUNCTION FUNCTION CLASSIFICATIONCLASSIFICATION
FUNCTION DESCRIBES THE PURPOSE FOR WHICH A SERVICE OR MATERIAL OBJECT IS ACQUIRED. Reporting to DPI is at the 2 or 3-digit function level, but local districts can use more detail for tracking expenditures.
FUNCTIONAL CODINGFUNCTIONAL CODING
THE QUESTION TO ANSWER:Which defined purpose caused the revenue or expense to be
incurred???
Defined Purposes: (AKA: FUNCTIONS)
– Instructional (100000) limited to activities
between students and teaching staff– Support Services (200000) administrative,
technical & logistical support to both instructional and non-instructional programs
– Community Services (300000)– Non-Program Trans. (400000)purchased
instructional services,, interfund transfers, open enrollment tuition are included here
– District-Wide (500000)used only with revenue sources
GeneralLedgerFund 10
Fund 20
Fund 30
Fund 40
Fund 50
Other Funds
Addendas
DebtServiceAmort.
Schedules
08 Debt table.
Budget/AnnualReport
toDPI
SpecialEd.
ClaimFund 27
ORGANIZATION OVERVIEW
RESOURCESRESOURCES WUFAR link located at: WUFAR link located at:
http://www.dpi.state.wi.us/sfs/wufar.htmlhttp://www.dpi.state.wi.us/sfs/wufar.html
PROPERTY TAX LEVIESPROPERTY TAX LEVIES
PROPERTY TAX LEVIESPROPERTY TAX LEVIES
LEVIES INTO FUND 10, 38, 39, LEVIES INTO FUND 10, 38, 39, 41, 8041, 80
THE TOTAL LEVY IS REVENUETHE TOTAL LEVY IS REVENUE SOURCE 211 – CURRENT LEVYSOURCE 211 – CURRENT LEVY SOURCE 212 – CHARGEBACK LEVY SOURCE 212 – CHARGEBACK LEVY
(FUND 10 ONLY)(FUND 10 ONLY) TAXES RECEIVABLE AT JUNE 30TAXES RECEIVABLE AT JUNE 30
DEBT SERVICE TAX LEVYDEBT SERVICE TAX LEVY Levy for the calendar year - budget Levy for the calendar year - budget
for the fiscal year ending June 30for the fiscal year ending June 30 Example:Example:
LT Debt Payments Due (principal & interest) October, 2007$101,000 March, 2008 $502,000 October, 2008$ 98,000
Levy in November, 2007 ($502,000 + $98,000)
Budget for 2007-08 ($101,000 + $502,000)
PROPERTY TAX REFUNDSPROPERTY TAX REFUNDS USUALLY PAYMENT TO MUNICIPALITY USUALLY PAYMENT TO MUNICIPALITY
FOR UNCOLLECTED PERSONAL FOR UNCOLLECTED PERSONAL PROPERTY TAXESPROPERTY TAXES FUND 10 FUNCTION 490 000 OBJECT 972FUND 10 FUNCTION 490 000 OBJECT 972(10 E 490 000 972)(10 E 490 000 972)
COLLECTION OF REFUNDCOLLECTION OF REFUND FUND 10 SOURCE 972 (10 R 000 000 972)FUND 10 SOURCE 972 (10 R 000 000 972)
SOURCE 212 LEVY – NET PAYMENTSSOURCE 212 LEVY – NET PAYMENTS** OPTIONALOPTIONAL NOT NEGATIVENOT NEGATIVE
*object 972 minus source 972*object 972 minus source 972
PROPERTY TAX REFUNDS PROPERTY TAX REFUNDS (cont’d)(cont’d)
ONLY LEVY FOR UNCOLLECTED ONLY LEVY FOR UNCOLLECTED TAXES PAID OR HAVE BEEN BILLED TAXES PAID OR HAVE BEEN BILLED BY THE MUNICIPALITY AND YOU BY THE MUNICIPALITY AND YOU INTEND TO PAY THEMINTEND TO PAY THEM
OVER LEVY RESULTS IN TAXING OVER LEVY RESULTS IN TAXING WITHOUT PROPER AUTHORIZATIONWITHOUT PROPER AUTHORIZATION
SOURCE/OBJECT 971/972SOURCE/OBJECT 971/972
Source/Object 971 “Refund of Source/Object 971 “Refund of Prior Year Expense”Prior Year Expense” E-Rate Refunds, Insurance Refund, CESA
Refund, Dividend’s on Worker’s Compensation
Source/Object 972 “Property Tax Source/Object 972 “Property Tax and Equalization Aid Refund”and Equalization Aid Refund” Property Tax Refund, Equalization Aid
Refund, Taxpayer Levy Refund, Special DPI Approved Amount
STATE AND FEDERAL AIDSTATE AND FEDERAL AID
STATE AND FEDERAL AIDSTATE AND FEDERAL AID ENTITLEMENTSENTITLEMENTS
MOST BIG $ PROGRAMSMOST BIG $ PROGRAMS GENERAL AID, SPECIAL GENERAL AID, SPECIAL
EDUCATION,TRANSPORTATION,SAGEEDUCATION,TRANSPORTATION,SAGE REVENUE WHEN $ APPROPRIATEDREVENUE WHEN $ APPROPRIATED
REIMBURSABLE GRANTSREIMBURSABLE GRANTS ““GRANT” PROGRAMSGRANT” PROGRAMS
CLAIMED ON PI 1086, SOURCE 630/730CLAIMED ON PI 1086, SOURCE 630/730 REVENUE WHEN REIMBURSABLE REVENUE WHEN REIMBURSABLE
EXPENDITURE OCCURSEXPENDITURE OCCURS
ACCOUNTING FOR DELAYED ACCOUNTING FOR DELAYED EQUALIZATION AID EQUALIZATION AID
PAYMENTPAYMENT
ACCOUNTING FOR DELAYED ACCOUNTING FOR DELAYED EQUALIZATION AID EQUALIZATION AID
PAYMENTPAYMENTCashCash $1,496,409 $1,496,409
10E 435000 38210E 435000 382 149,882 149,88210R 62110R 621 $1,504,684$1,504,684
10R 34510R 345 141,607 141,607
Receivable 715500Receivable 715500 $ 72,291$ 72,291
10R 62110R 621 $ 72,291$ 72,291
Grant ReceivablesGrant Receivables
When a grant reimbursement claim is submitted When a grant reimbursement claim is submitted BEFORE the end of the fiscal year, but the actual BEFORE the end of the fiscal year, but the actual cash won’t be received until AFTER the start of cash won’t be received until AFTER the start of
the new fiscal year, a grant receivable needs to be the new fiscal year, a grant receivable needs to be booked in the ledger.booked in the ledger.
Grant ReceivablesGrant Receivables
Why do it this way?Why do it this way?
In accrual accounting, revenue is recognized when it In accrual accounting, revenue is recognized when it is earned. By submitting the reimbursement claims is earned. By submitting the reimbursement claims in June, the district “earns” the money in the 06-in June, the district “earns” the money in the 06-
07 school year, so the claims need to be booked as 07 school year, so the claims need to be booked as revenue in 06-07; however, since the actual cash revenue in 06-07; however, since the actual cash
will not come until the 07-08 school year, a will not come until the 07-08 school year, a receivable is used to account for the expected receivable is used to account for the expected
cash.cash.
Grant ReceivablesGrant ReceivablesExample:Example:Title I-A 06-07 reimbursement claim for $26,493 is Title I-A 06-07 reimbursement claim for $26,493 is
completed and sent to DPI on June 29.completed and sent to DPI on June 29.
07-08 Entry When the Cash Comes:07-08 Entry When the Cash Comes:Debit 10B-711000-001 CashDebit 10B-711000-001 Cash $26,493 (increase)$26,493 (increase) Credit 10B-715000-001 Due from Oth Gov’ntsCredit 10B-715000-001 Due from Oth Gov’nts $26,493 (decrease) $26,493 (decrease)
(So, 07-08 revenue is not effected at all(So, 07-08 revenue is not effected at allby this transaction, which is what we by this transaction, which is what we want because this amount was already want because this amount was already booked as revenue in 06-07!)booked as revenue in 06-07!)
06-07 EOY 06-07 EOY AdjustingAdjusting Entry (both increases): Entry (both increases):Debit 10B-715000-002 Due from Oth Gov’ntsDebit 10B-715000-002 Due from Oth Gov’nts$26,493$26,493 Credit 10R-000000-751 IASA Title 1Credit 10R-000000-751 IASA Title 1 $26,493 $26,493
Grant ReceivablesGrant Receivables July 1, 2006July 1, 2006 July 1, 2007July 1, 2007
✔Submit 05-06 grant claims.
✔Book 05-06 revenue in appropriate Source and end-of-year 05-06 receivable in 715000-002.
✔Submit 06-07 grant claims.
✔Book 06-07 revenue in appropriate Source and end-of-year 06-07 receivable in 715000-002.
Receive 06-07 cash early in 07-08 fiscal year (shows up on 07-08 aids register)
Revenue should equal the Aids Register amount minus the beginning-of-the-year
receivables (05-06 revenue) plus the end-of-year receivables (06-07 revenue).
Aids register is available at: http://www.dpi.state.wi.us/sfs/online_ar.html
05-06 06-07 07-08
Receive 05-06 cash early in 06-07 fiscal year (shows up on 06-07 aids register)
DEBTDEBT
CASH FLOW BORROWINGCASH FLOW BORROWING
GENERAL FUND TRANSACTIONGENERAL FUND TRANSACTION BALANCE SHEET TRANSACTION FOR BALANCE SHEET TRANSACTION FOR
PRINCIPALPRINCIPAL INTEREST EXPENSE – ACCRUAL AT JUNE INTEREST EXPENSE – ACCRUAL AT JUNE
3030 INTEREST REVENUEINTEREST REVENUE
IN FUND PRODUCING INCOMEIN FUND PRODUCING INCOME INTEREST RECEIVABLE AT JUNE 30 INTEREST RECEIVABLE AT JUNE 30
CASH FLOW BORROWING CASH FLOW BORROWING (cont’d)(cont’d)
Accounting transactions:Accounting transactions: Dr. CashDr. Cash $1,000,000$1,000,000 Cr. Temporary Notes Payable $1,000,000Cr. Temporary Notes Payable $1,000,000
(Acct. 10B 811 100)(Acct. 10B 811 100)
Dr. Interest Expense $ 40,000Dr. Interest Expense $ 40,000 (10E 682 281 000)(10E 682 281 000)
Cr. Interest Payable $ 40,000Cr. Interest Payable $ 40,000 (10B 811 700)(10B 811 700)
CAPITAL LEASECAPITAL LEASE
““BORROWING” FROM A VENDOR BORROWING” FROM A VENDOR TO ACQUIRE ITEMTO ACQUIRE ITEM
JOURNAL ENTRY TO RECORD JOURNAL ENTRY TO RECORD FINANCING TRANSACTIONFINANCING TRANSACTION
PRINCIPAL AND INTEREST PRINCIPAL AND INTEREST PAYMENT TRANSACTIONS AS PAYMENT TRANSACTIONS AS PAYMENTS ARE MADE (object PAYMENTS ARE MADE (object 678/688, function 281000)678/688, function 281000)
Long-Term DebtLong-Term Debt
If used for acquiring capital If used for acquiring capital assets, receipted into Capital assets, receipted into Capital Projects Fund & expended out of Projects Fund & expended out of therethere
Capital items include buildings, Capital items include buildings, equipment, books equipment, books
General Fund? – highly unlikely General Fund? – highly unlikely but can be used if for operational but can be used if for operational purposes—must notify DPIpurposes—must notify DPI
BOND ANTICIPATION BOND ANTICIPATION NOTESNOTES
OFTEN TAKEN OUT PRIOR TO OFTEN TAKEN OUT PRIOR TO RECEIVING PROCEEDS OF RECEIVING PROCEEDS OF “PERMANENT” DEBT ISSUANCE“PERMANENT” DEBT ISSUANCE
WHEN RECEIVED CREDIT WHEN RECEIVED CREDIT “LOANS” SOURCE 873 – CAPITAL “LOANS” SOURCE 873 – CAPITAL PROJECTS FUNDPROJECTS FUND
INTEREST PAYMENTS ON BANS – INTEREST PAYMENTS ON BANS – DEBT SERVICE FUND – TRANSFER DEBT SERVICE FUND – TRANSFER IN OR LEVY IN OR LEVY
DEBT REFINANCINGDEBT REFINANCING
INCUR NEW DEBT AND USE INCUR NEW DEBT AND USE PROCEEDS TO “PAY OFF” PROCEEDS TO “PAY OFF” EXISTING DEBTEXISTING DEBT
““PAY OFF” MAY INCLUDE PAY OFF” MAY INCLUDE PAYMENT OF NEW DEBT PAYMENT OF NEW DEBT PROCEEDS TO ESCROW AGENTPROCEEDS TO ESCROW AGENT
TAKES PLACE IN DEBT SERVICE TAKES PLACE IN DEBT SERVICE FUNDFUND
CONTACT DPI FOR ASSISTANCE CONTACT DPI FOR ASSISTANCE WITH RECORDINGWITH RECORDING
WHAT HAPPENS IF DEBT WHAT HAPPENS IF DEBT SERVICE EXPENDITURES ARE SERVICE EXPENDITURES ARE
CODED INCORRECTLYCODED INCORRECTLY??
SHARED COST MAY BE SHARED COST MAY BE CALCULATED INCORRECTLY, CALCULATED INCORRECTLY, RESULTING IN WRONG AID BEING RESULTING IN WRONG AID BEING PAID TO DISTRICTPAID TO DISTRICT
DISTRICT’S ANNUAL REPORT DEBT DISTRICT’S ANNUAL REPORT DEBT TABLE WILL NOT RECONCILE TABLE WILL NOT RECONCILE FROM BEGINNING TO END OF FROM BEGINNING TO END OF YEARYEAR
Reporting District Long-Term Reporting District Long-Term DebtDebt
Districts are now required to notify DPI Districts are now required to notify DPI via the reporting portal any changes in via the reporting portal any changes in their long-term debt repayment their long-term debt repayment schedulesschedules
Prepayments of principal, refinancings, Prepayments of principal, refinancings, new loans will require adjustments by new loans will require adjustments by districtdistrict
Updating of online debt schedules can Updating of online debt schedules can be done at any time during the yearbe done at any time during the year
Reporting District Long-Term Reporting District Long-Term DebtDebt
Debt amortization schedules must be Debt amortization schedules must be entered as part of Annual Report entered as part of Annual Report submission process if not updated submission process if not updated previouslypreviously
Reporting via DPI portalReporting via DPI portal https://www2.dpi.state.wi.us/safr/https://www2.dpi.state.wi.us/safr/
Reporting District Long-Term Reporting District Long-Term DebtDebt
Be sure that the function 281000, Be sure that the function 281000, 283000, 285000, 289000 principal 283000, 285000, 289000 principal and interest amounts used in your and interest amounts used in your general ledger agree to debt general ledger agree to debt schedulesschedules
PAYROLLPAYROLL
PAYROLL ITEMSPAYROLL ITEMS
ACCRUAL AT JUNE 30 FOR EMPLOYEE ACCRUAL AT JUNE 30 FOR EMPLOYEE SERVICES PROVIDEDSERVICES PROVIDED SALARIESSALARIES RELATED BENEFITSRELATED BENEFITS INCLUDES “SUMMER PAYROLLS”INCLUDES “SUMMER PAYROLLS”
NO ACCRUAL FOR POST-EMPLOYMENT NO ACCRUAL FOR POST-EMPLOYMENT BENEFITSBENEFITS
SPECIFIC RULES FOR UNSETTLED SPECIFIC RULES FOR UNSETTLED CONTRACTSCONTRACTS
UNSETTLED EMPLOYEE UNSETTLED EMPLOYEE CONTRACTSCONTRACTS
If mediation/arbitration when filing If mediation/arbitration when filing report—lowest offer is recordedreport—lowest offer is recorded
If settlement occurs after filing report If settlement occurs after filing report but before October 1, amend report but before October 1, amend report to show increased costto show increased cost
Settlement occurs after October 1—Settlement occurs after October 1—additional cost is reported in year additional cost is reported in year settlement occurssettlement occurs
COMPENSATED ABSENCESCOMPENSATED ABSENCES Compensated absences are generally in the form
of vacation, sick leave or earned “comp” time.
No expenditure is recognized on the books of the District when the absence is earned and accumulated. Rather, compensated absences are accounted for as expenditures in the fiscal period in which they are paid.
It is accounted for in the same manner as the regular wage paid for the pay period.
If compensated absences are paid by lump-sum settlement to a former employee, they should be accounted for under function 290000, object 290 “Other Employee Benefits”.
SPECIAL EDUCATIONSPECIAL EDUCATION
Fund 27 Fund 27 Fund 27 is where revenues & expenses
related to special ed are recorded.
Fund 27 acts like a “sub fund” to Fund 10 (general operations).
Fund 10 must always make a balancing entry in the form of a transfer to Fund 27 at the end of the year.
Fund 27 must have a “0” ending fund balance.
Fund 27 - What’s up with Fund 27 - What’s up with that??that??
Fund 27 identifies Special Education Costs.
A portion of these eligible costs are reimbursed with a categorical aid.
A categorical aid is State aid that is intended for a specific purpose.
MEDICAID “SBS” SERVICESMEDICAID “SBS” SERVICES
PROVIDED TO CHILDREN WITH DISABILITIES (SPECIAL EDUCATION)
COST IN SPECIAL EDUCATION FUND (27)
REVENUE IN GENERAL FUND (10)
CANNOT CHARGE MEDICAID COSTS AGAINST FEDERAL GRANT FUNDS
NOT A DEDUCTIBLE FOR STATE CATEGORICAL SPECIAL ED
SPECIAL EDUCATION SPECIAL EDUCATION PROGRAMSPROGRAMS
Many different types of special Many different types of special education programseducation programsPROGRAM OPERATED BY THE DISTRICT (DISTRICT EMPLOYS PERSONNEL)
PROGRAM OPERATED WITH A CONSORTIUM OF SCHOOLS
PROGRAM OPERATED BY CESAPROGRAM OPERATED BY CCDEB
Costs funded by a combination of Costs funded by a combination of state, local and federal dollarsstate, local and federal dollars
COOPERATIVE AGREEMENT COOPERATIVE AGREEMENT 66.030166.0301
COOPERATIVE AGREEMENT COOPERATIVE AGREEMENT 66.030166.0301
MULTIDISTRICT PROJECTS WITH COOP AGREEMENT
ONE DISTRICT ACTS AS FISCAL AGENTMAINTAIN REVENUE AND EXPENDITURE RECORDS
FISCAL AGENT AGREEMENT STRONGLY ENCOURAGEDIDENTIFIES RESPONSIBILITIES OF BOTH THE FISCAL AGENT AND INDIVIDUAL GRANT RECIPIENTS
COOP TRANSACTION COOP TRANSACTION CODINGCODING
FISCAL AGENT AGREEMENT:http://dpi.wi.gov/sfs/coop_agree.html
COOP TRANSACTION COOP TRANSACTION CODING (Cont.)CODING (Cont.)
FUND 99FUND 99OTHER THAN SPECIAL EDUCATION
REVENUES MUST EQUAL EXPENDITURES
COST PRORATED TO PARTICIPATING DISTRICTS
FISCAL AGENT PORTION TRANSFERRED FROM FUND 10
FUND 27FUND 27COOP TRANSACTION COOP TRANSACTION
CODINGCODINGFUND 27
MULTIDISTRICT PROGRAM FOR SPECIAL EDUCATION
FISCAL AGENT DISTRICT INCURS ALL EXPENDITURESMUST HIRE STAFF
FISCAL AGENT DISTRICT BILLS PARTICIPATING DISTRICTS FOR TOTAL COST OF PROGRAM
COOP TRANSACTION COOP TRANSACTION CODING (Cont.)CODING (Cont.)
FUND 27FISCAL AGENT DISTRICT FILES CATEGORICAL AID CLAIM
SPECIAL EDUCATION AID RECEIVED BY FISCAL AGENT DISTRICT
FISCAL AGENT DISTRIBUTES AID TO PARTICIPATING DISTRICTS
FISCAL AGENT PORTION REMAINS IN FUND 27
PURCHASED INSTRUCTIONAL PURCHASED INSTRUCTIONAL SERVICES (FUNCTION 430 000)SERVICES (FUNCTION 430 000)
INSTRUCTIONAL SERVICES INSTRUCTIONAL SERVICES PROVIDED RESIDENT DISTRICT BY PROVIDED RESIDENT DISTRICT BY OTHER ENTITIESOTHER ENTITIES
LINKED WITH A 300 “PURCHASE LINKED WITH A 300 “PURCHASE SERVICE” OBJECTSERVICE” OBJECT
NON-INSTRUCTIONAL SERVICES NON-INSTRUCTIONAL SERVICES CHARGED TO APPROPRIATE 200 CHARGED TO APPROPRIATE 200 000 FUNCTION WITH 300 OBJECT000 FUNCTION WITH 300 OBJECT
OTHER ISSUESOTHER ISSUES
FUND 21 - GIFTSFUND 21 - GIFTS
Gifts specified by donor to be Gifts specified by donor to be used for operating purposes used for operating purposes ((playground equipment, school playground equipment, school nurse, beautification of nurse, beautification of grounds)grounds)
Includes both expendable and Includes both expendable and non-expendable portionnon-expendable portion
http://www.dpi.wi.gov/sfs/wufar.htmlhttp://www.dpi.wi.gov/sfs/wufar.html
COMMODITIESCOMMODITIES
Obtained from the commodity internet Obtained from the commodity internet system at: system at: http://www.dpi.wi.gov/fns/index.htmlhttp://www.dpi.wi.gov/fns/index.html
The total value of commodities received is The total value of commodities received is in the CARS Report and is labeled “Total in the CARS Report and is labeled “Total Value Received: Entitlement, Bonus, DoD, Value Received: Entitlement, Bonus, DoD, and Cheese Processing.”and Cheese Processing.”
Year end entry:Year end entry: Debit Function 257000, Object 410Debit Function 257000, Object 410 Credit Source 714Credit Source 714
COMMODITY HANDLING CHARGES
Aids register – Federal food service aid is reported
at gross amount Commodity handling charge is
reported as a negative amount (titled 714)
Accounting – Federal Food Service Aid – Source
717 Commodity Handling Charge –
Function 257000, Object 387
AGENCY FUND 60AGENCY FUND 60
Student organizations and clubs Student organizations and clubs Students manage activities and faculty advisor Students manage activities and faculty advisor
approves transactionsapproves transactions District acts as agent maintaining records and District acts as agent maintaining records and
accounting for activityaccounting for activity School Board responsible for establishment and School Board responsible for establishment and
enforcement of policies and procedures to enforcement of policies and procedures to safeguard agency assetssafeguard agency assets
District may establish agency fund for parent District may establish agency fund for parent organizationsorganizations
Guidance on developing policies and procedures Guidance on developing policies and procedures http://www.dpi.state.wi.us/sfs/doc/stud_acct.dochttp://www.dpi.state.wi.us/sfs/doc/stud_acct.doc
FUND 73FUND 73EMPLOYEE BENEFIT TRUST FUNDEMPLOYEE BENEFIT TRUST FUND
Resources held in trust for formally established defined benefit pension plans, defined contribution plans, or employee benefit plans. Such plans must be legally established in accordance with state statutes, federal laws and IRS requirements. Specific requirements for use of this fund have been established by the DPI at: http://www.dpi.wi.gov/sfs/emp_benefit_trust_fund.html
FUND 73FUND 73EMPLOYEE BENEFIT TRUST FUNDEMPLOYEE BENEFIT TRUST FUND
Must have on file with DPI:Must have on file with DPI: Actuary study or allowed
alternative method Board minutes approving
establishment of a trust Trust agreement Legal opinion on the trust
FUND 73FUND 73EMPLOYEE BENEFIT TRUST FUNDEMPLOYEE BENEFIT TRUST FUND
Trust must be irrevocableTrust must be irrevocable Contribution to the trust must be Contribution to the trust must be
used for purpose trust is establishedused for purpose trust is established Reported as an expenditure by Reported as an expenditure by
district and is included in shared costdistrict and is included in shared cost
SALE OF SCHOOL PROPERTYSALE OF SCHOOL PROPERTY
Statute 120.10(12) states that the school board has the power to “authorize the sale of any property belonging to and not needed by the school district.
Generally recorded in Fund 10 under source 860
District may choose to place the revenue in another fund but only if so designated at the district’s annual meeting
SELF FUND HEALTH SELF FUND HEALTH BENEFITSBENEFITS
DISTRICT SELF FUNDS DISTRICT SELF FUNDS HEALTH/DENTAL BENEFITSHEALTH/DENTAL BENEFITS
PRIVATE PLAN ADMINISTRATOR PRIVATE PLAN ADMINISTRATOR USUALLY INVOLVEDUSUALLY INVOLVED
PREMIUM EQUIVALANCY USED FOR PREMIUM EQUIVALANCY USED FOR BUDGETING/COSTINGBUDGETING/COSTING
FINAL REPORTED EXPENDITURES FINAL REPORTED EXPENDITURES MUST BE ACTUAL COST FOR FISCAL MUST BE ACTUAL COST FOR FISCAL YEAR – INCLUDING IBNR COSTS YEAR – INCLUDING IBNR COSTS
SELF-FUNDED HEALTH SELF-FUNDED HEALTH BENEFITSBENEFITS
SERIES OF GENERAL FUND SERIES OF GENERAL FUND BALANCE SHEETS ACT AS BALANCE SHEETS ACT AS “INSURANCE COMPANY”“INSURANCE COMPANY”
LIABILITY ACCOUNT VS LIABILITY ACCOUNT VS RESERVED FUND BALANCERESERVED FUND BALANCE
5% ADJUSTMENT ACCOUNT 5% ADJUSTMENT ACCOUNT SOURCE/OBJECT 965SOURCE/OBJECT 965
QUESTIONS?QUESTIONS?
School Finance AuditorsSchool Finance Auditors
Kathy Guralski - (608) 266-3862Kathy Guralski - (608) [email protected]@dpi.state.wi.us
Gene Fornecker - (608) 267-7882Gene Fornecker - (608) [email protected]@dpi.state.wi.us
Natalie Rew - (608) 267-9212Natalie Rew - (608) [email protected]@dpi.state.wi.us