ESSA Accounting/Reporting Requirement ASSA and Audsum Updates State of New Jersey ~ Department of Education Office of School Finance NJASBO Professional Development ESSA Accounting/Reporting Requirement ASSA and Audsum Updates September, 2017

New Jersey Department of Education Office of School Finance: Director: Yut’se Thomas Office of Fiscal Policy and Planning Director: Michael Mindlin Planning Associates: Stephanie Gorman Jacqueline Grama Patricia Lagarenne Heather Leary Peter Noehrenberg Montu Patel

Every Student Succeeds Act (ESSA) 2017-18 School Level Reporting Data Collection

ESSA 2017-18 School Level Reporting Compliance The Every Student Succeeds Act (ESSA) was signed by President Obama on December 10, 2015. NJDOE website (http://www.nj.gov/education/ESSA/ ) has all you need to know about ESSA- For Local Education Agency’s (LEA’s)(refers to school districts, charter schools and renaissance school projects) business offices, the most notable change is the requirement to segregate expenditures charged to the general fund and special revenue funds at the school level for submission to the DOE for reporting purposes.

ESSA 2017-18 School Level Reporting Compliance ESSA Sec 1111 (h)(1)(c )(x) – A State that receives assistance under this part shall prepare and disseminate widely to the public an annual State report card for the State as a whole that meets the requirements of this paragraph. Each State report card required under this subsection shall include the following information: ……

ESSA 2017-18 School Level Reporting Compliance ESSA Sec 1111 (h)(1)(c )(x) – “The per pupil expenditures of Federal, State and Local funds, including actual personnel expenditures and nonpersonnel expenditures of Federal, State and Local funds, disaggregated by source of funds for each LEA and each school in the State for the preceding fiscal year”

ESSA 2017-18 School Level Reporting Compliance Prior to this regulation, schools reported data (testing) outcomes without any information on their access to financial resources. For the last decade-plus, the federal government has required districts to report student outcomes by school. Spending was the missing piece. Data for school-level spending is now required in order to be able to understand school-level student outcomes in context.

New DOE home webpage… Easy Access!

ESSA 2017-18 School Level Reporting Compliance

ESSA 2017-18 School Level Reporting Compliance

ESSA 2017-18 School Level Reporting Compliance Possible presentation of school level data on the performance reports: Per Pupil Expenditures from: Total: Federal funds- school level $ 599 State and Local funds- school level 5,099 Federal funds- district expenditure allocated to school 250 State and Local funds- district expenditure allocated to school 7,500 $ 13,448

ESSA 2017-18 School Level Reporting Compliance Who has to comply with the school level reporting requirement? Everyone must comply! Regardless of the amount of ESSA grant funds- Regardless of LEA type (includes CSSD’s, ESC’s and Voc’s) Single-school districts and charter schools do not have to segregate expenditures by school as we will calculate report card from Audsum submission. Former Abbott districts using Fund 15- no change in their data submission to the DOE.

ESSA 2017-18 School Level Reporting Compliance How will the DOE collect data? Unaudited school level expenditure data will be collected via a new tab in Audsum (beginning 2017-18). This school expenditure tab will open data collection tables for each school identified with the district. Such data will be entered by the School Business Administrator (SBA) and submitted to the DOE after data is entered and the district certifies such data via Audsum.

ESSA 2017-18 School Level Reporting Compliance How will the DOE collect data? Data will be unaudited, and will be tested to match audited budgetary basis statements data entry (Schedule C-1 of the CAFR) once the LEA activity has been certified by Certified Public Accountant (CPA). Data field screens for school level data must be completed prior to SBA certification of Audsum. Must be done before CAFR due date, or December 5, 2018. (hint--prepare schedules in advance)

ESSA 2017-18 School Level Reporting Compliance Note that the sum of the expenditures entered here will be tested to match the total audited budgetary basis statements submitted by the CPA. 8. Unallocated District expenditures

ESSA 2017-18 School Level Reporting Compliance

ESSA 2017-18 School Level Reporting Compliance How to allocate data: As of today, we are awaiting regulatory guidance from the US Department of Education. Until then--- Statute says “The per pupil expenditures of Federal, State and Local funds, including actual personnel expenditures and nonpersonnel expenditures of Federal, State and Local funds , disaggregated by source of funds for each LEA and each school in the State for the preceding fiscal year” therefore…..

ESSA 2017-18 School Level Reporting Compliance How to allocate data: (continued) Begin segregating expenditures by school as soon as possible. (current fiscal year) Applicable for all function codes 100-223 and 240 in all funds. School segregation can happen “off-line”- does not need to be part of the Board Secretary Report! Method of recording school level expenditures is a LEA decision pending payroll system, accounting software, staffing, etc.

ESSA 2017-18 School Level Reporting Compliance How to allocate data: (continued) Software vendors received instruction to allow for chart of account school code appendix last Spring. Some allocation issues, such as segregating PO’s is a vendor specific issue- check with vendor for assistance. Benefits will be allocated by the DOE- no need for LEA’s to allocate benefits. Total benefit expenditures will be allocated to each school based on the salary reported in each school by the LEA.

ESSA 2017-18 School Level Reporting Compliance How to allocate data: (continued) Expenditures that are not readily identifiable to a school shall be reviewed at the end of the year to see if costs can be distributed to school level at the end of the year. District can determine procedures to further allocate such costs. Procedures and calculations are not subject to financial audit, but should be well documented and retained in the event of an inquiry from the program or grant office.

ESSA 2017-18 School Level Reporting Compliance How to allocate data: (continued) Examples- Occupational Therapists (OT), Physical Therapists (PT), Child Study Teams (CST), substitutes, or the like. May wish to allocate CST based on elementary, middle or high school as served. May wish to allocate OT/PT based on location of students served. May wish to allocate Home Instruction at end of year when students served are identified.

ESSA 2017-18 School Level Reporting Compliance How to allocate data: (continued) Examples- Occupational Therapists (OT), Physical Therapists (PT), Child Study Teams (CST), substitutes, or the like. (continued) May want to allocate substitutes across all schools as needed. May wish to perform a year end allocation of staff that float among buildings, based on percentage of time assigned to each building. (such as PT/OT/Speech)

ESSA 2017-18 School Level Reporting Compliance How to allocate data: (continued) Any “unallocated” expenditures reported to the DOE will be distributed equitably as district-wide expense. All other district level costs reported in cost centers 230 and 250 and above will be allocated in an approved manner to be determined. (such as via ADE or equally across buildings)

ESSA 2017-18 School Level Reporting Compliance Possible presentation of school level data on the performance reports: Per Pupil Expenditures from: Total: Federal funds- school level $ 599 State and Local funds- school level 5,099 Federal funds- district expenditure allocated to school 250 State and Local funds- district expenditure allocated to school 7,500 $ 13,448

ESSA 2017-18 School Level Reporting Compliance How to allocate data: (continued) The DOE will allocate other district expenditures such as the Superintendent cost center, facility costs and transportation costs equitably across each school. May be fixed amount for each school, may be based on ADE in each school, awaiting further guidance. The DOE will calculate per pupil cost based on ADE reported by the LEA.

ESSA 2017-18 School Level Reporting Compliance How to allocate data: (continued) Whatever allocation method district implements must be used consistently year to year for Title I Supplement-not-Supplant measures. If LEA decides to change allocation method for whatever reason, prior year school level expenditures reports shall be restated.

ESSA 2017-18 School Level Reporting Compliance Questions? Comments? doecafr@doe.state.nj.us Remember- Regulatory Guidance is forthcoming from USDE. We will be in communication with ECBO’s and ASBO as we receive information.

School Register, Audit Workpapers ASSA Submission Schedule of Audited Enrollments

ASSA and Schedule of Audited Enrollments Early Guidance for 2017-18 Audit Program The New Jersey School Register is a student record keeping document required by New Jersey Administrative Code (N.J.A.C.) 6A:32-8. The purpose of the school register is to document each school district’s continuous year-to-year cycle of enrolling students, recording daily attendance, and reporting dropouts and year end attendance to the Department of Education.

ASSA and Schedule of Audited Enrollments Early Guidance for 2017-18 Audit Program It is the source document for the Application for State School Aid (ASSA) and is reflected in the NJ Smart data submission. School districts must develop a system capable of generating a set of ASSA Workpapers that document the compilation of School Register data for the ASSA student count, including each reportable sub group, and provides an audit trail for the auditor to use as a basis for testing.

ASSA and Schedule of Audited Enrollments Early Guidance for 2017-18 Audit Program School districts must also prepare written internal procedures that provide a description of the October 15 enrollment count process. The procedures should describe how the count was taken, who was responsible for compiling the data and submitting the ASSA data, and the various personnel assigned responsibilities for collection and submission of the data.

ASSA and Schedule of Audited Enrollments Early Guidance for 2017-18 Audit Program The ASSA Workpapers, original supporting documentation, and internal procedures must be maintained on file for a period of seven years. The Application for State School Aid (ASSA) is the data collection used to gather the resident and nonresident pupil counts required to calculate a school district’s state aid entitlement, pursuant to the definition of resident enrollment described in N.J.S.A. 18A:7F-45.

ASSA and Schedule of Audited Enrollments Early Guidance for 2017-18 Audit Program

ASSA and Schedule of Audited Enrollments Early Guidance for 2017-18 Audit Program The ASSA data is used to report enrollment data to various agencies at the state and federal level as well as for various internal calculations such as state aid and certain per pupil costs. The ASSA Workpapers were revised years ago to align with the ASSA data collection.

CPA’s will need to prepare new schedules for ASSA and Schedule of Audited Enrollments Early Guidance for 2017-18 Audit Program The Schedule of Audited Enrollments which are prepared by the CPA’s and presented in the Auditor’s Management Report need to be updated to include the verification for several new workpapers introduced years ago. CPA’s will need to prepare new schedules for Students Sent to another LEA, Students Sent to a Choice program, Students Sent to a charter school Received Students Speech only students

ASSA and Schedule of Audited Enrollments Early Guidance for 2017-18 Audit Program ANYTOWN SCHOOL DISTRICT APPLICATION FOR STATE SCHOOL AID SUMMARY SCHEDULE OF AUDITED ENROLLMENTS ENROLLMENT AS OF OCTOBER 13, 2017   Students "SENT" to New Jersey Public Schools. (School Register Workpaper 2) Includes Students sent to out of district programs including Regional Day Schools, County Special Service Districts, and Special Education Alternative Voc Education. Also includes Regular Resident 3 and 4 year old Preschool Students sent to Contracted Pre-School Program Providers. Choice, Charter School and PSSD students are reported on separate worksheets. October 13, 2017 Application for State School Aid Sample for Verification Reported on Sample Verified per Errors per A.S.S.A. Workpapers Selected from Registers Sent to another program On Roll Errors Enrollment Category: Full Shared Half Day Preschool-3YR Half Day Preschool-4YR Full Day Preschool-3YR Full Day Preschool-4YR Half Day Kindergarten Full Day Kindergarten One Two Three Four Five

ASSA and Schedule of Audited Enrollments Early Guidance for 2017-18 Audit Program ANYTOWN SCHOOL DISTRICT APPLICATION FOR STATE SCHOOL AID SUMMARY SCHEDULE OF AUDITED ENROLLMENTS ENROLLMENT AS OF OCTOBER 13, 2017   Students Received from Other New Jersey Public Schools (School Register Workpaper 3) October 13, 2017 Application for State School Aid Sample for Verification Reported on Sample Verified per Errors per A.S.S.A. Workpapers Selected from Registers RECEIVED from another program On Roll Errors Enrollment Category: Full Shared Half Day Preschool-3 Half Day Preschool-4 Full Day Preschool-3 Full Day Preschool-4 Half Day Kindergarten Full Day Kindergarten One Two Three Four Five Six

ASSA and Schedule of Audited Enrollments Early Guidance for 2017-18 Audit Program ANYTOWN SCHOOL DISTRICT APPLICATION FOR STATE SCHOOL AID SUMMARY SCHEDULE OF AUDITED ENROLLMENTS ENROLLMENT AS OF OCTOBER 13, 2017   Students SENT to a Charter Schools AND verified to the CHE (School Register Workpaper 6) October 13, 2017 Application for State School Aid Sample for Verification Reported on Sample Verified per Errors per A.S.S.A. Workpapers Selected from Registers Charter School Students On Roll Errors Enrollment Category: Full Shared Half Day Preschool-3 Half Day Preschool-4 Full Day Preschool-3 Full Day Preschool-4 Half Day Kindergarten Full Day Kindergarten One Two Three Four Five

ASSA and Schedule of Audited Enrollments Early Guidance for 2017-18 Audit Program ANYTOWN SCHOOL DISTRICT APPLICATION FOR STATE SCHOOL AID SUMMARY SCHEDULE OF AUDITED ENROLLMENTS ENROLLMENT AS OF OCTOBER 13, 2017   Resident Students receiving Speech Only services per N.J.A.C. 6A:14-3.6 (School Register Workpaper 10) Sample Reported on for A.S.S.A. as Workpapers as Verifi- Enrollment Category: Speech ONLY SPEECH ONLY Variance cation Verified Errors Half Day Preschool-3 Half Day Preschool-4 Full Day Preschool-3 Full Day Preschool-4 Half Day Kindergarten Full Day Kindergarten One Two Three Four Five

ASSA and Schedule of Audited Enrollments Early Guidance for 2017-18 Audit Program APPLICATION FOR STATE SCHOOL AID SUMMARY SCHEDULE OF AUDITED ENROLLMENTS ENROLLMENT AS OF OCTOBER 13, 2017 Students SENT to a CHOICE School District (School Register Workpaper 12)   October 13, 2017 Application for State School Aid Sample for Verification Reported on Sample Verified per Errors per A.S.S.A. Workpapers Selected from Registers On Roll - Choice Student On Roll Errors Enrollment Category: Full Shared Half Day Preschool-3 Half Day Preschool-4 Full Day Preschool-3 Full Day Preschool-4 Half Day Kindergarten Full Day Kindergarten One Two Three Four Five

ESSA 2017-18 School Level Reporting Compliance Questions? assa@doe.state.nj.us

CAFR & AMR Submissions Notes from OFAC- Special Audits Unit Vincent Mastrocola, Director (office)  609-777-3544 (cell )     609-410-4425 (email)  vincent.mastrocola@doe.state.nj.us Theresa Toner (office) 609-633-6661 (email) theresa.toner@doe.state.nj.us

CAFR Submission Tips Only one copy of Audit Reporting Package is mailed to DOE, one copy mailed to county office. (new for FY17) Please be sure that all files uploaded to the CAFR Repository are properly named and the correct file is uploaded for your district. Please verify that PDF files are searchable.

CAFR Submission Tips All LEA’s need to upload their board resolution accepting the CAFR/AMR and if necessary, the CAP. Resolutions can accept both CAP and CAFR/AMR at the same time if available. If CAP is not prepared at the time of the acceptance of the CAFR/AMR then a separate resolution accepting CAP must be uploaded.

CAFR Submission Tips Notes: Please have your DOE Homeroom Administrator check the DOE School Directory for current contact information of LEA leadership. Please respond timely if there is a request from Special Audits Unit.

ESSA 2017-18 School Level Reporting Compliance Questions? Vincent Mastrocola, Director (office)  609-777-3544 (cell )     609-410-4425 (email)  vincent.mastrocola@doe.state.nj.us Theresa Toner (office) 609-633-6661 (email) theresa.toner@doe.state.nj.us

Audsum Comments

Audsum notes from Finance: Reminder that CPA’s enter data into Audsum, districts must review entry, then Superintendent and Business Administrator must certify the accuracy of the data before submitting to the DOE. CPA’s should not certify as BA’s.

Audsum notes from Finance: Common Errors- Fund balance entry errors cause errors on the budget recap screen. Audited Excess Surplus lines- amounts are entered on wrong lines. Special Ed Cost Centers must match enrollment types recorded in SRS for Tuition Rate Calculation. Tuition revenue from Individuals (Audsum line 140) and Tuition from LEA’s (Audsum line 150) are frequently transposed and cause other calculation errors.

I certify that the submitted audsum data (Questionnaire, Revenues, Expenditures, Fund Balance, Enterprise Fund, Statements of Financial Assistance, Supplemental Data for tuition purposes, Debt Service, and School Facilities) compiled as of June 30, 2017 has been edited for completeness and accuracy and understand that this data will be used in the preparation of the next Budget Program.

Statement of Assurance: By submitting the audsum data and building square footage information, we acknowledge having reviewed that information which will be utilized by the New Jersey Department of Education (DOE) to calculate the district's 2018-19 Indirect Cost Rate(s), and we hereby certify the following: (1) The information contained herein has been prepared in accordance with the instructions issued by NJ DOE and conforms to the criteria in Title 2 of CFR part 200- Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards and is correct to the best of our knowledge and belief. (2) No costs other than those incurred by this agency have been included in the indirect cost rate application. (3) The same costs that have been treated as indirect costs have not been and will not be claimed as direct costs. Similar types of costs have been accorded consistent treatment. (4) All expenditures detailed on the application form have been made, and records supporting them have been maintained and are available for audit.

I certify that the submitted audsum data (Questionnaire, Revenues, Expenditures, Fund Balance, Enterprise Fund, Statements of Financial Assistance, Supplemental Data for tuition purposes, Debt service, and School Facilities) compiled as of June 30, 2017 has been edited for completeness and accuracy and understand that this data will be used in the preparation of the next Budget Program.

Questions: Office of School Finance: Main number 609-292-4421 doecafr@doe.state.nj.us Thank you…..