RI’s Uniform Chart of Accounts (UCOA) Cynthia S. Brown Director, Statewide Efficiencies

Past-Present-Future Session Overview: Uniform Chart of Accounts – What It Is Why UCOA was developed How it was developed RI’s UCOA Tools for Success and Data Quality Data Use Lessons Learned Questions

What is UCOA? Uniform system of numbers and accounts Uses and Benefits Consistent system to capture daily accounting transactions Organize data logically for analysis Robust reporting capabilities embedded in structure Used in local accounting systems By ALL school districts, charter schools, state operated schools and educational collaboratives Standardized methodologies applied by all users

Why UCOA was developed Fifth largest per pupil expenditure in country Sufficient gains in student achievement weren’t being realized Legislature needed to better understand how funds were being invested before providing further education aid increases Precipitous drop in revenues created major budget deficits in state and local municipalities, increasing demand for transparency RI General Law 16-2-9.4 enacted

How UCOA was developed Best Practices – Who else had a UCOA? Needs Assessment – What data was wanted? Accounting Systems – Can they handle a UCOA? What would it cost to… Build it? Maintain it? Who can build it? How do we build it? When will it be done?

MAP USER NEEDS TO DEVELOP UCOA CAPABILITIES How UCOA was developed Understand the Audience Identify audiences and key problems – what are the pain points? Develop solutions and benefits Differentiate from the status quo Understand what motivates potential users MAP USER NEEDS TO DEVELOP UCOA CAPABILITIES

How UCOA was developed Technical System Analysis – Determining System Capabilities: On-Site meetings with selected software vendors Demonstrations of system capabilities Surveys of all relevant vendors Determine limiting factors requiring modification Determine products and services available from vendors and potential costs from vendors for the implementation

How UCOA was developed Key Development Rules: NCES Handbook – Financial Accounting for Local and State School Systems provided a guideline for structure and methodology Must include adequate segment or field lengths and a logical, hierarchy-based numbering methodology (Parent, Child, Grandchild) Must provide for internal expansion without modifying segment length in the future Restricted to numbers only

The Four Major Attributes of UCOA Method and content uniformity allows “apples to apples” comparison between different LEAs Precise rules for capturing and reporting data aligned to specific goals and objectives Conformity of principles, standards, rules and accounts used by all LEAs Clear, detectable view of how dollars are invested in logical, granular detail Transparency Uniformity Comparability Accountability

RI’s UCOA 31 Digits – Wait……Don’t be afraid!

The UCOA Segment Structure Fund Type of Money Source Federal, State Local 2 characters Subfund Source of Money Title I, IDEA, Property Taxes 6 characters Location School or Department 5 characters Function Activity Teaching, Leadership, Professional Develop- ment 3 characters Program Broad Objective Regular Ed, Special Ed, ESL Subject Curriculum Math, Science, Athletics, 4 characters Object Budget Item Salaries, Revenues, Equipment) Job Classifica- tion Employees Principals, Teachers, Aides, Custodians

UCOA ACCOUNT ILLUSTRATIONS

UCOA ACCOUNT ILLUSTRATIONS

Allocations in UCOA – Pre-defined Payroll – Prorata amount of Base Pay - used for Benefit Costs only Students – Prorata based on number of applicable Students Teachers – Prorata based on number of applicable Teachers Square Feet – Prorata based on amount of Square Feet in each applicable Location Meals – Prorata based on number of Meals served at each Location Transportation – Prorata based on number of applicable number of Students riding buses at each Location

Tools for Success

How do we use the data? Compare districts to statewide averages, surrounding communities, and those of similar demographics Year-to-year comparisons are meaningful and transparent Pinpoint outliers by segment

How do we use the data?

How do we use the data?

How do we use the data?

How do we use the data?

Lessons Learned Create core, standardized account lines Minimize segments to be allocated in any given line Determine and/or develop the visualization tool(s) to be used beginning year one Ensure robust guidance grouped by topic area in the accounting manual Training never stops UCOA is never static

Lessons Learned Continuously foster use of data Be clear about what UCOA will be and do and what it can’t be and do Recruit key “Champions” Legislature, Commissioner, Superintendents, Auditor General, Municipal Leaders, Business Managers Communication often RECOGNIZE THE POWER OF CHAMPIONS TO LEAD THE WAY

QUESTIONS Need more information – visit our website: http://www.ride.ri.gov/FundingFinance/SchoolDistrictFinancialData/UniformChartofAccounts.aspx Contact Cynthia Brown (401) 222-4257 Cynthia.Brown@ride.ri.gov