FY F-196 Annual Financial Statement Calendar and Summary of Changes Pam Peppers Supervisor, SD/ESD Financial Reporting Office of Superintendent of Public Instruction (360)

FY F-196 ANNUAL FINANCIAL STATEMENT (F-196) AND DATA COLLECTION CALENDAR STATUTORY CITATION: WAC PURPOSE: This section provides the calendar for preparation and submission of the school district's F-196 annual financial statement and data collection process. Notice is hereby given to school districts and ESDs, in accordance with WAC , that failure to adhere to the due dates below could result in a delay of apportionment payments. The final date for filing or forwarding will be considered as having been met if the postmark or other evidence indicates shipment prior to the due date or the next workday if the due date falls on a weekend. Final Action DateAction October 25Final date for submission of completed F-196 data from the school district to the local ESD. The data will be submitted on F-196 manual form and/or will be electronically transmitted. Districts not able to submit by the October 25 due date may request a waiver by or written notice to the ESD. November 1Final date for ESD to review and forward the certification page back to the school district for signature. November 8The signed certification page is due from the school district to the ESD. November 15Final date the signed certification page by the ESD is due at OSPI, School Financial Services. All of these due dates fall on a Thursday.

F-196 Changes and Additions  Certification Page oAdded a Total column on the right hand side to total all funds.

F-196 Changes and Additions  Balance Sheet (page 2) oAdded a Total column on the right hand side to total all funds.

F-196 Changes and Additions  Statement of Revenues, Expenditures, and Changes in Fund Balance (page 3) oAdded a Total column on the right hand side to total all funds. Added GL 535, Other Financing Uses to the GF, CPF, and TVF (Item #560).

F-196 Changes and Additions  Budgetary Comparison Schedules (pages 4-8) o Added Other Financing Uses, GL 535, in the GF, CPF, and TVF (Item #560). oThe word Final was added to the title of the budget column indicating the data includes any budget extensions.

F-196 Changes and Additions  Statement of Fiduciary Net Assets (page 9) oMinor revisions of titles and formatting to be in line with GASB. Data on page 9 is manually entered.  Statement of Changes in Fiduciary Net Assets (page 10) oMinor revisions of titles and formatting to be in line with GASB. Interest and dividends are combined on one line. Data on page 10 is manually entered. oThe next slide shows the changes to page 10.  Schedule of Long-Term Debt (page 11) oMinor changes to the column numbers to be in line with GASB. Data on page 11 is manually entered.

Minor changes to page 10—Stars indicate GASB required changes. Interest (Item 4667) and Dividends (Item 4677) are now combined on one line.

F-196 Changes and Additions  Revenue Changes (revenue pages 13-16) Added General Fund Revenue Account: 7163-Promoting Academic Success To record revenue from other school districts for student participation in a Promoting Academic Success program.  Program/Activity/Object Report (page 17) Added Activity 15, Public Relations. Activity 15 is open in Programs 51, 52, and 97. All Public Relations pertaining to Federal programs should be charged directly to Program 51 or 52. Some Public Relations costs, coded to Program 97, Activity 15, are not allowable for the federal indirect rate. An item number (3641) is included on page 23 of the F-196 for districts to manually input allowable Public Relations costs. If no dollar amount is entered in item 3641, all Activity 15 costs will be calculated in the direct expenditure base and will not be included in the indirect pool. This will decrease the indirect rate.

F-196 Changes and Additions  Data Requirements For Supplemental Reports (page 20) Manual entry is required for E-rate (Item 1771), LID days (Item 2021), Excess Cost Methodology certification (Item 1561), impact fees (Item 1581), mitigation fees (Item 1591), and COLA under RCW 28A (Item 1551). A new prompt was added for the Excess Cost Methodology certification, (Item #1561) If a district did not offer a special education program enter a 3 to indicate the implementation of Excess Cost does not apply.  Data Requirements For End-Of-Year Reporting To Apportionment And State Recovery Rate (page 21) Manual input for Fire District Payment (Item 1781) and Teacher Assistance Program (Item 1941). The State Recovery Indirect Rate is calculated on this page.

F-196 Changes and Additions  Data Requirements For Calculating Federal Indirect Cost Rate Including Fixed With Carry-Forward Distorting Manual Input Items, pages 22 and 23 What is a Distorting Item? Flow-through grants, contingencies, election expenses, renovations and alterations, and fines and penalties charged in Program 97 are specific types of distorting items. oFlow-through grants are awards received by a school district and “passed through” to another district. If the grant amount is $100,000, and the district passes $25,000 to another district, the amount of “flow-through” is $25,000. oAlthough the federal language includes contingencies as a distorting item, they are generally not applicable to school districts.

F-196 Changes and Additions  Data Requirements For Calculating Federal Indirect Cost Rate Including Fixed With Carry-Forward (cont.) What is a Distorting Item? (cont.) oElection expenses charged to Program 97, Activity 11, are considered distorting, if they are significant. oRenovations and alterations may be considered distorting if the expenditures are unusual, unexpected, significant, and distort the districts normal expenditures. For example, the winter wind storms damaged the roof on a building. If the repairs were expended in the general fund the cost to renovate the building distorts the normal district expenditures. These expenditures may be considered distorting (no capital outlay, object 9, costs can be included). oFines and penalties assessed against the district by L&I, OSHA, WISHA, or IRS fees for filing late payroll taxes may be considered distorting if significant.

F-196 Changes and Additions  Data Requirements For Calculating Federal Indirect Cost Rate Including Fixed With Carry-Forward (cont.) Indirect Expenditure Manual Input Items What is an Indirect Expenditure? oIndirect costs (expenditures) represent the expenses of doing business that are not readily identified with a particular grant, contract, project function or activity, but are necessary for the general operation of the school district and the conduct of activities it performs. In theory, costs like heat, light, accounting, and personnel might be charged directly to programs if little meters could record minutes in a cross- cutting manner. However, this is not practical; therefore, cost allocation plans or indirect cost rates are used to distribute those indirect expenditures. oAudit costs charged to Program 97, Activity 11, but not charged directly to another program, may be included in the indirect expenditure pool (manual Input item 3471). oLegal costs are generally not includible in the indirect expenditure pool. Allowable costs are entered in Item 3631.

F-196 Changes and Additions  Data Requirements For Calculating Federal Indirect Cost Rate Including Fixed With Carry-Forward (cont.) What is an Indirect Expenditure (cont.)? oCosts for the Superintendent or Assistant Superintendent charged completely to Activity 12, but allocable to Activity 13 or 14 and are considered indirect expenditures. This applies to small districts whose Superintendent, or Superintendent’s secretary, has responsibilities in the Business Office, H.R., Print Center, Motor Pool, Warehouse, or I.T. (Item 3481). Do not include capital outlay (Object 9). oNEW IN FY Public relations, recorded in Program 97, Activity 15, to communicate or conduct general liaison and keep the public informed on matters of public concern, but not charged directly to a specific program (Item 3641). Do not include costs designed solely to promote the governmental unit. If no entry is made in this Item number, expenditures for Public Relations will NOT be included in the Indirect Pool! This will decrease the indirect rate. Do not include capital outlay (Object 9). oTermination leave, paid upon resignation or discharge, for federally supported staff cannot be charged to a federal program. If the termination leave is coded to a local or state program it may be considered an indirect expenditure (Item 3651). Coding the leave to Activity 13 or 14 ensures inclusion in the indirect pool and no entry would be necessary in this Item number.

F-196 Changes and Additions  Data Requirements For Calculating Federal Indirect Cost Rate Including Fixed With Carry-Forward (cont.) What is an Indirect Expenditure (cont.)? oNEW IN FY Costs recorded in Program 97, Activity 72, for districtwide Information Systems must be entered in Item The amount entered here should not include expenditures for student records such as printing report cards or student transcripts. If no entry is made in this Item number expenditures for Information Systems will NOT be included in the Indirect Pool! This will decrease the indirect rate. Do not include capital outlay (Object 9). oNEW IN FY General administration (organization-wide) expenditures charged in Program 97, Activity 25, Pupil Management & Safety, which is allocable to the business office, HR, Motor Pool, Print Center, I.T., or Warehouse can be considered indirect. If a cost allocation plan is in place, an entry should be made in this Item number (3691). The Unrestricted rate includes Activity 25 in the calculation. oSpace and Occupancy costs are considered indirect expenditures.

F-196 Changes and Additions  Data Requirements For Calculating Federal Indirect Cost Rate Including Fixed With Carry-Forward (cont.) What are Space and Occupancy Costs? Space and Occupancy costs associated with organization-wide functions within the central administrative building (accounting, payroll, personnel) are considered indirect expenditures if a space allocation or use study supports the allocation. As an example, if an analysis of the total square footage for the central administration building has been done, and the business office occupies 25% of the total square footage, then 25% of allowable expenditures may be included in the indirect pool. Therefore, 25% of the central administration building costs for supervision, grounds, operation of building, maintenance, utilities, security, and insurance may be included as indirects.

F-196 Changes and Additions  Restricted Indirect Cost Rate Calculation (page 24) The next slide shows the Restricted Indirect Cost Rate Calculation: Added Program 97, Activity 15, Public Relations Item number AddedItem number 3701 for Program 97, Activity 72, Information Systems. Added Item number 3691 for Program 97, Activity 25, Pupil Management & Safety (if the expenditures are allocable to Activity 13 or 14 and the district has a cost allocation plan). The display of the calculation at the bottom of page 24 has changed but the system is calculating the rate using a similar methodology as prior years.

F-196 Changes and Additions  Unrestricted Indirect Cost Rate Calculation (page 25) The next slide shows the Unrestricted Indirect Cost Rate Calculation. The unrestricted rate may be used for those federal grants that do not have a supplant provision. Most DOE grants do not allow the Unrestricted rate to be used. The calculation for the Unrestricted and Restricted rate are very similar. However, the Unrestricted rate calculation includes the expenditures for Maintenance, Grounds, Superintendent’s Office, Information Systems, and Pupil Management & Safety, which results in a higher Unrestricted rate.

F-196 Changes and Additions  Edits, Recovery Report, and Maintenance of Effort (MOE): Updated edits as necessary. Recovery revenues are listed on page 29 of the F No changes were made to the Special Education, Federal Cross-Cutting, or Vocational Education Maintenance of Effort tests.

Reminders, Questions, and Discussion Remember that Fund 7 (Fiduciary Funds, pages 9 and 10), Fund 8 (Permanent Fund) and the Schedule of Long-Term Debt (page 11) are all manual entry item numbers. If the district tracks the Saul Haas fund in the ASB fund, and the amount is material, the ASB fund must be reduced accordingly and Saul Haas transactions must be entered in Fund 7, pages 9 and 10. Questions about changes or new items? Federal Indirect Pages –Are the Distorting and Indirect Expenditure Input Items easier to understand? More clarification needed? Other Questions or Discussion?