FY 2010–11 F-196 Update Ramona Garner Supervisor, School District/ESD Financial Reporting (360)

AGENDA 1.Important dates to remember. 2.Walk-through of the F-196 noting changes and additions for 2010–11 and other notes of interest. 3.Questions? Comments? 2

FY 2010–11 F-196 Update The dates below have not changed. Please make a note of these dates now, it is not too early to start gathering the needed data and balancing system items for year-end closing. Starting now on this process will make meeting the below listed dates easier for you. Final Action DateAction October 25 School Districts - Final date for submission of completed F-196 data from the school district to the local ESD. The data will be submitted electronically and/or on an F-196 manual form. Districts not able to submit by the October 25 due date may request a waiver by or written notice to the ESD. November 1ESDs - Final date for the ESD to review and forward the certification page back to the school district for signature. November 8School Districts - The signed certification page is due from the school district to the ESD. November 15ESDs - Final date the signed certification page by the ESD is due at OSPI, School Financial Services. 3

FY 2010–11 F-196 Update In accordance with WAC , districts and ESDs that fail to adhere to the due dates could have 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. 4

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Special Notes  If your district will not be able to meet the November 15, 2011 deadline due to unusual or special circumstances, an extension must be requested in writing. Direct your request to JoLynn Berge at:  If you run into difficulty when attempting to send an F-196 file to OSPI, please contact your district’s vendor.  After your file has been uploaded into the EDS system, you would then call OSPI if you experience difficulties. 6

FY 2010–11 F-196 Update Special Notes (cont.)  Districts that have a wavier letter for their number of days of operation should submit a copy either via or regular mail to Ramona Garner at OSPI.  If a district has exceeded its budget appropriation, the district will need to submit a letter of explanation with their F-196 document. 7

FY 2010–11 F-196 Update  Most of you should be familiar with the F-196 in the EDS platform. At some point you should have accessed the EDS system for iGRANTS, Enrollment, S-275, F-195, F-200, and F-203, which are all on this platform.   If you have not accessed the EDS platform, contact your ESD for assistance. 8

FY 2010–11 F-196 Update  Take the time to review the SAFS F-196 User Manual. You will find useful step-by-step information. Appendix 2 of the manual gives you a chart that shows you which screens must be manually input and which will be prepopulated if you import data from an external source. 9

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FY 2010–11 F-196 Update  Chapter VI of the ABFR has information that you may find useful such as: Frequently Asked Questions with Answers. The F-196 with Item Numbers. Edits for F-196. F-196 Item Number Dictionary. 11

FY 2010–11 F-196 Update  Below you can see the selection to access the F-196.  The reports do not have sequential page numbers.  I will refer to the reports by name during this training. When you call for assistance please refer to the name of the report, not the page number on the report. 12

FY 2010–11 F-196 Update 13  There are no changes to the Certification Page, however, make sure to review this page and verify the information is correct. Several districts misstated their basis of accounting and/or number of days school was conducted in 2009–10. These items flow in from your budget (F-195). Double check to make sure they are correct.  Save your entries often throughout your F-196 process. We all know there is nothing more discouraging than to have a power or system failure after you have entered and not saved data.

FY 2010–11 F-196 Update  After you make your entries on any of the pages in EDS, hit the save button and then save and return once you have completed all entries for the particular page you are on. Do not hit your browser’s back button. 14

FY 2010–11 F-196 Changes and Additions  For 2010–11, districts will need to identify the amounts in Program 13 that are Education Jobs Funds (EduJobs). You will do this by making an entry on the Data Requirements for Supplemental Reports page in new item number 160.  The State’s funding for Learning Improvement Days (LID) has been eliminated for FY year 2010–11. 15

FY 2010–11 F-196 Changes and Additions  Two new Programs were added for the 2010–11: Program 02 — Basic Education – Alternative Learning Experience Program 59 — Institutions – Juveniles in Adult Jails  Revenue Code 4159 Institutions—Juveniles in Adult Jails was added 16

FY 2010–11 F-196 Changes and Additions 17  The following GLs were added: 821 Restricted for Carryover of Restricted Revenues 845 Restricted for Self Insurance 866 Restricted from Impact Fee Proceeds 867 Restricted from Mitigation Fee Proceeds 872 Committed to Minimum Fund Balance Policy 884 Assigned to Other Capital Projects 888 Assigned to Other Purposes 889 Assigned to Fund Purposes  Several changes were made to titles and headings as described in Bulletin No  Districts that manually enter the GL Accounts will enter GL 241, Minus Warrants Outstanding, as a positive number. The data will display as a negative number and be subtracted in the Total Assets calculation.

FY 2010–11 F-196 Update  On the Statement of Revenues, Expenditures, and Changes in Fund Balance, you can see clarification in the General Fund as to what is included in current expenditures. For example: Regular Instruction is Program 01, less Program 01 object 9. Federal Stimulus is Programs 11 through 19, less object 9 for those programs. Support Services current expenditures are Programs 97, 98, and 99, less activities 83, 84, and 85 in Program 97 and less object 9.  Clarification on the General Fund Budgetary Comparison Schedules is similar to the Statement of Revenues, Expenditures, and Changes in Fund Balance. 18

Below is a screen shot from the F-196 Chapter of the ABFR. 19

FY 2010–11 F-196 Update  On The Data Requirements for End-of-Year Reporting to Apportionment and State Recovery Rate Report, there is the addition, as stated earlier, to this page of item number 160— Education Jobs Funds (EduJobs).  There are no changes to the manually entered distorting items such as election expenses, flow-through grants, alterations/renovations, and fines/penalties. This data is used in the Federal Restricted and Unrestricted Indirect Rate. 20

FY 2010–11 F-196 Update  No changes were made to the Statement of Fiduciary Net Assets and Statement of Changes in Fiduciary Net Assets page. Remember that Item 464, Less Investment Expenses, must be entered as a negative number. 21

FY 2010–11 F-196 Update 22  There are no changes to the manually entered Indirect Expenditures. The district should enter audit costs, legal costs, public relations expenditures, termination leave for federally supported staff, Information System expenditures, Pupil Management and Safety costs, and space and occupancy costs, if a cost plan has been established. Remember that legal costs are very restrictive. Only enter costs associated with the interpretation of laws, regulations, or board policy. Do not include legal costs for any lawsuits, preparation of lawsuits, or negotiation expenses.

FY 2010–11 F-196 Update  Examples of allowable legal costs are: Review of insurance policy to determine if a claim should be reimbursed by the insurance company. Review of termination policy. Interpreting bankruptcy rules when a vendor files bankruptcy.  Do not enter student record for Information Systems. Only enter costs associated with fiscal systems (i.e., WSIPC fees, districtwide IT support). 23

FY 2010–11 F-196 Update  The Restricted and Unrestricted Federal Indirect Rate Calculations have not changed. The data on the left side at the bottom will display data from the 2008–09 F-196. This data is used in the calculation on the 2010–11 F-196 for rates you will use in 2012–13.  Federal indirect rates are calculated to four decimal places. They will show as four decimal places starting with this year’s F

FY 2010–11 F-196 Update  What is an Indirect Cost Rate? An Indirect Cost Rate is a means of determining, in a reasonable manner, the percentage of allowable general management costs that benefit each federal program or activity.  What is an Indirect Expenditure? Indirect costs (expenditures) are generally administrative costs such as the salaries and expenses for staff engaged in organization-wide (general) activities. 25

FY 2010–11 F-196 Update  Indirect Expenditures-manual entries (cont.) Public Relations Costs: (item 364) Activity 15 is used for the district’s public relations. Any public relations costs associated with federal programs should be charged to Program 51 or 52. Public relations, to communicate or conduct general liaison and keep the public informed on matters of public concern, but not charged directly to a specific program, should be recorded in Program 97, Activity 15. 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). 26

FY 2010–11 F-196 Update  Indirect Expenditures-manual entries (cont.) Termination Leave: (item 365) Termination leave paid to federally supported staff upon resignation or discharge 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. Coding the leave costs to Activity 13 or 14 ensures inclusion in the indirect pool and no entry would be necessary in this item number. 27

FY 2010–11 F-196 Update  Indirect Expenditures-manual entries (cont.) Superintendent Costs: (item 348) If your district is small and your Superintendent and Superintendent’s secretary have multiple responsibilities related to Activity 13 or 14, or 72–75, an entry can be made in item 345. Large districts whose Superintendent’s responsibilities are 100% Activity 12 will not have an entry in this item number. Do not include Capital Outlay (Object 9). Information Systems Costs: (item 370) Record costs for districtwide Information Systems, Program 97, Activity

FY 2010–11 F-196 Update  Indirect Expenditures-manual entries (cont.) Do not include expenditures for student records such as student records fees, software, or student records staff. If no entry is made in item number 370, 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). 29

FY 2010–11 F-196 Update  What is a distorting item? Distorting items are activities that do not occur regularly each year; that is, they “distort” the regular expenditures. Districts will need to determine and document expenditures they consider significant and distorting. Manual entries are required. This data is used in the Federal Restricted and Unrestricted Indirect Rate. 30

FY 2010–11 F-196 Update DDistorting items-manual entries (cont.) What is considered “significant”? Districts have to individually answer this question. What happened during the school year in your district that “distorts” your expenditures? Normally this would be something unusual or unexpected that does not happen in the normal operation of your district that inflated your expenditures for the year. This amount could be $5,000 or $35,000 depending on the size of your district. 31

FY 2010–11 F-196 Update  Distorting Items-manual entries (cont.) Flow-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. Although the federal language includes contingencies as a distorting item, they are generally not applicable to school districts. Election expenses charged to Program 97, Activity 11 are considered distorting if they are significant. 32

FY 2010–11 F-196 Update  Distorting Items-manual entries (cont.) Renovations 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. Do not include Capital Outlay (Object. 9). 33

FY 2010–11 F-196 Update  Distorting Items-manual entries (cont.) Fines 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. Late fees associated with Accounts Payable are not considered a fine or penalty. 34

Maintenance of Effort and Recovery and Carryover Templates  The Federal Cross-Cutting and Special Education MOE tests are complete. The MOE templates have been updated and posted to our website under Training/Tools at  This summer Steve Shish updated the 2010–11 Recovery and Carryover Spreadsheet on our website at  Districts are encouraged to access these templates to run the MOE tests for mid-year and budget purposes and the 2010–11 recovery and carryover information. 35

Other Notes of Interest  After your ESD approves your F-196, and you feel that your financial statements are correct, you can proceed with your year-end close. Any review of the district’s F-196 by OSPI does not affect the districts year-end close process.  If your district requires that an F-196 revision be made, please contact Ramona Garner via at: to request an MS Word document. Upon receipt of your I will send the district’s F-196 and instructions for making revisions. Don’t forget to copy your ESD when making a revision 36

Questions/Comments??  Questions and comments are always welcome and appreciated. Whenever possible, ing your questions is beneficial in assuring that OSPI understands your question and allows a “paper trail” for OSPI and the district if the question should arise again. 37