All Aboard for Federal Reporting 2009 Fall ASBO Conference September, 2009

Presenters Deene Dayton, Dept. of Legislative Audit Deene Dayton, Dept. of Legislative Audit Susan Woodmansey, Dept. of Education Susan Woodmansey, Dept. of Education Bobbi Leiferman, Dept. of Education Bobbi Leiferman, Dept. of Education Rob Huffman, Dept. of Education Rob Huffman, Dept. of Education

New Guidance on Title I Per School Expenditure Reporting School level expenditure data for School level expenditure data for Focus on expenditures related to instruction and support functions. Focus on expenditures related to instruction and support functions. Will not include expenditures such as facilities operation and maintenance, transportation and food service. Will not include expenditures such as facilities operation and maintenance, transportation and food service. Will not include employee benefit costs. Will not include employee benefit costs. Will not include expenditures from federal programs. Will not include expenditures from federal programs. Will not include special education expenditures. Will not include special education expenditures.

New Guidance on Title I Per School Expenditure Reporting Data reported and available to DOE: Data reported and available to DOE: Total expenditures for salaries of instructional staff (teachers), guidance counselors, librarians, Office of the Principal (school admin) by fund, function, object Total expenditures for salaries of instructional staff (teachers), guidance counselors, librarians, Office of the Principal (school admin) by fund, function, object PRF – districts reported contracted salaries for certified staff by attendance center PRF – districts reported contracted salaries for certified staff by attendance center Assistance that may be needed from districts: Assistance that may be needed from districts: Above staff paid with federal funds Above staff paid with federal funds Allocation between middle (1121) and high school (1131) if all reported in Allocation between middle (1121) and high school (1131) if all reported in Reporting Timelines: Reporting Timelines: If supplemental data needed from districts – by early January, 2010 If supplemental data needed from districts – by early January, 2010 Reports to USDOE – must be submitted by March 31, 2010 Reports to USDOE – must be submitted by March 31, 2010

Special Education Maintenance of Effort Districts are required to file an MOE worksheet that compares FY08 to FY09. Districts are required to file an MOE worksheet that compares FY08 to FY09. Blank MOE forms will be posted to the website. DOE will assist school districts by providing a summary of the financial data reported on the annual report to use in completing the MOE form. Blank MOE forms will be posted to the website. DOE will assist school districts by providing a summary of the financial data reported on the annual report to use in completing the MOE form. Both a protected and unprotected worksheets are available based on the needs of the district reporting. Both a protected and unprotected worksheets are available based on the needs of the district reporting. Audited financial data should be used, if available. Audited financial data should be used, if available. Deadline to submit MOE form is October 23, Deadline to submit MOE form is October 23, PREFERRED, may be submitted electronically ( attachment) PREFERRED, may be submitted electronically ( attachment) Bobbi Leiferman Bobbi Leiferman Paper copy mailed, please no faxed copies Paper copy mailed, please no faxed copies

State Fiscal Stabilization Funds, FY2010 Funds will be paid to districts in September. Funds will be paid to districts in September. Only one expenditure report must be submitted to DOE in FY2010 Only one expenditure report must be submitted to DOE in FY2010 Cash management policies of the federal government require district to have spent or to spend within 3 days of receiving the revenue. Cash management policies of the federal government require district to have spent or to spend within 3 days of receiving the revenue. General journal entries are still acceptable for FY2010. General journal entries are still acceptable for FY2010. Same prohibitions on utilization of funds as outlined in FY09. Same prohibitions on utilization of funds as outlined in FY09. An expenditure report must be submitted by October 5 th. An expenditure report must be submitted by October 5 th.

A District may not use Education Stabilization funds for – Payment of maintenance costs; Payment of maintenance costs; Stadiums or other facilities primarily used for athletic contests or exhibitions or other events for which admission is charged to the general public; Stadiums or other facilities primarily used for athletic contests or exhibitions or other events for which admission is charged to the general public; Purchase or upgrade of vehicles; Purchase or upgrade of vehicles; Improvement of stand-alone facilities whose purpose is not the education of children, including central office administration or operations or logistical support facilities; Improvement of stand-alone facilities whose purpose is not the education of children, including central office administration or operations or logistical support facilities; Financial assistance for students to attend private elementary or secondary schools, unless the funds are used to provide special education and related services to students with disabilities, as authorized by the IDEA; Financial assistance for students to attend private elementary or secondary schools, unless the funds are used to provide special education and related services to students with disabilities, as authorized by the IDEA; School modernization, renovation, or repair that is inconsistent with State law; or School modernization, renovation, or repair that is inconsistent with State law; or Restoring or supplementing a “rainy day” fund. Restoring or supplementing a “rainy day” fund.

Coding/Uses/Expenditures of SFSF SFSF Revenue code = 4199, may be receipted to “any” K-12 fund. If used to purchase equipment – additional reporting may be necessary regarding vendor paid. SFSF Revenue code = 4199, may be receipted to “any” K-12 fund. If used to purchase equipment – additional reporting may be necessary regarding vendor paid. Expenditures tracked separately by use of accounting operational unit (recommend using 3 rd level of Software Unlimited). Expenditures tracked separately by use of accounting operational unit (recommend using 3 rd level of Software Unlimited). Permissible to use GJ entry to record expenditures Permissible to use GJ entry to record expenditures GJ entry such as the below for elementary teacher salaries: GJ entry such as the below for elementary teacher salaries: CREDIT (local expenditure) CREDIT (local expenditure) DEBIT (SFSF expenditure) DEBIT (SFSF expenditure)

ARRA Revenue Codes ARRA - New School District Revenues Codes: Revenue CodeNameCFDA #Description 4145 ARRA-Impact Aid- School Construction Formula Grant84.404A Revenue received under the American Recovery and Reinvestment Act 2009 to provide resources for construction activities in federally impacted school districts ARRA-State Clean Diesel Grant Revenue received under the American Recovery and Reinvestment Act 2009 to provide resources to reduce toxic emissions from diesel exhaust of public school buses ARRA-Child Care and Development Block Grant Revenue received under the American Recovery and Reinvestment Act 2009 to provide equipment to child care facilities to improve the quality of care ARRA-Title I Grant to LEA84.389A Revenue received under the American Recovery and Reinvestment Act 2009 to provide short term funding (2 to 3 years) for the educational needs of disadvantaged students (Title I, Part A ESEA of 1965) ARRA - IDEA, Part B, A Revenue received under the American Recovery and Reinvestment Act 2009 to provide short term funding (2 to 3 years) for special education and related services ARRA - IDEA, Part B, 619 Preschool84.392A Revenue received under the American Recovery and Reinvestment Act 2009 to provide short term funding (2 to 3 years) for preschool special education and related services ARRA - School Lunch Equip Revenue received under the American Recovery and Reinvestment Act 2009 to obtain or replace equipment for school food service programs ARRA - State Fiscal Stabilization Funds Revenue received under the American Recovery and Reinvestment Act 2009 to provide relief to state and local government budgets in order minimize and avoid reductions in education.

Federal Accountability (tracking federal expenditures with software) Accountability on expenditure of funds is mandated. Accountability on expenditure of funds is mandated. District software provides coding to allow easy tracking of revenues and expenditures. District software provides coding to allow easy tracking of revenues and expenditures. Each ARRA grant award must be tracked separately from regular allocations of IDEA and Title I. Each ARRA grant award must be tracked separately from regular allocations of IDEA and Title I. IDEA ARRA funds must be expended in the Special Education Fund. IDEA ARRA funds must be expended in the Special Education Fund. When authorized - if using the allowance to transfer state & local funds not in excess of 50% of increase in IDEA funding – these funds must be tracked too. Suggestion is to use software to track – use of operational code. When authorized - if using the allowance to transfer state & local funds not in excess of 50% of increase in IDEA funding – these funds must be tracked too. Suggestion is to use software to track – use of operational code. Budgets will include a much greater level of detail. Budgets will include a much greater level of detail.

Delinquent School Audits School districts are required to have at least bi-annual audits (SDCL ). School districts are required to have at least bi-annual audits (SDCL ). Responsible fiscal management of public funds requires DOE to ensure compliance to auditing requirement. Responsible fiscal management of public funds requires DOE to ensure compliance to auditing requirement. Lack of fiscal oversight in this area may allow for mismanagement of public funds. Lack of fiscal oversight in this area may allow for mismanagement of public funds. DOE is discussing policies that will prompt action of school districts that are delinquent. DOE is discussing policies that will prompt action of school districts that are delinquent. Ultimately the responsibility to complete and file an audit lies with the school district. Ultimately the responsibility to complete and file an audit lies with the school district. How can a school district ensure timely submissions by auditors? How can a school district ensure timely submissions by auditors? Write specific timelines in the contract with auditor. Write specific timelines in the contract with auditor. Frequent communication with auditor on status of audit. Frequent communication with auditor on status of audit.

Misc. Topics Needed ASAP - Workgroup to update Records Management Manual Needed ASAP - Workgroup to update Records Management Manual Last updated in 1985 Last updated in 1985 No mention of electronic data file retention No mention of electronic data file retention No mention of E-rate records retention (requirement for this federal funding) No mention of E-rate records retention (requirement for this federal funding) Need other school administrators to participate Need other school administrators to participate First half ECF needed? Please contact DOE if it would be a financial hardship to wait for 2 nd half funding. First half ECF needed? Please contact DOE if it would be a financial hardship to wait for 2 nd half funding. Annual Data Reporting Annual Data Reporting Allocation of SE administration and other costs Allocation of SE administration and other costs Reconcile debt service payments to Schedule of Long Term Debt Reconcile debt service payments to Schedule of Long Term Debt Appropriate coding for Capital Leases Appropriate coding for Capital Leases Late filers – each year more and more districts wait to file until the last few days before August 15 th. Late filers – each year more and more districts wait to file until the last few days before August 15 th. Depreciation expense in Food Service Fund Depreciation expense in Food Service Fund Buying instructional computers from function 2227 Buying instructional computers from function 2227 Allocation of Title I expenditures Allocation of Title I expenditures