Fall at a Glance WASBO Fall Conference New School Administrator & Business Support Staff Workshop October 8, 2015 Debi Towns, Ass’t. Dir., School Financial Services Team Department of Public Instruction

How the SFS Team Can Help You SFS Team web page, webcasts, tutorials Phone calls, Newsletters and listserv notices Conferences and workshops 2

The SFS Team Division for Finance and Management Brian Pahnke Assistant Superintendent School Financial Services Bob Soldner, Director Education Administrative Director Bill Evans IS Business Automation Specialist Victoria Chung Accountant Senior Gene Fornecker Auditor (School Finance) Bruce Anderson School Administration Consultant Paul Spirek IS Business Automation Specialist Vacant IS Business Automation Specialist Derek Sliter Auditor (School Finance) Brian Kahl Auditor (School Finance) Karen Kucharz Robbe School Administration Consultant School Financial Services Debi Towns, Assistant Director Education Administrative Director Carey Bradley School Administration Consultant Dan Bush School Administration Consultant – State Categorical Special Educ. Aid SFS Team Staff Directory SFS Team Staff Assignments 3

What Should You Do…Today! Bookmark the SFS Team Home Page: Make sure you are identified appropriately in the PI 1500 District Contacts Report 4

District Contacts Report Our main electronic communication besides our website is . ◦ Electronic Bulletins & Newsletters distributed via listserv – subscribe at: ◦ [SFS Home Page – “Mailings/Listserv”] ◦ Targeted s 5

PI-1500 District Contacts Reports

PI 1500 District Contacts Report The PI 1500 District Contacts Report accomplishes two goals. ◦ Identifies who is authorized to submit and receive information for each school financial services report (targeted s) ◦ Creates an ID/Password for those individuals authorized to submit reports. 7

PI 1500 District Contacts Report 8 Use this tab to update the users authority status. Select the User from the dropdown list. District (0000 ) To add someone new

PI 1500 District Contacts Report 9 At least two individuals should be identified as “authorized contact “ for the PI 1500 District Contacts Report District (0000 ) To provide a User with their information use:

PI 1500 District Contacts Report 10 Training materials are available within the PI portal via a link on the left-hand side under “SFS Info & help”. Links to the SFS ListServe are also available on the left-hand side

PI 1500 District Contacts Report An individual’s ID is very specific in the PI ◦ It is not an option to change an individual’s ID. If an individual, using the same ID, is granted access and authority in multiple school districts. ◦ All personal information is universal; if changed in one district this new information will be visible in the other district(s). ◦ This maybe a good feature for a CESA employee or auditor. Unless you are authorized to submit via the District Contacts Report, you will not be able to access the reports. The PI-1500 District Contacts Report stays open all year long to allow for staff changes. Districts should be reviewing this report through out the year to make sure it is updated to reflect current staff and staff assignments. 11

Why “Fiscal Year at a Glance?” Answer the basic questions that we receive throughout the year Show how data elements translate into state aid payments & the revenue limit Show relationships across fiscal years, connections between various pieces of data 12

How are you at multi-tasking? Most business mgrs are closing out a budget while working in another one – and beginning the budgeting for a third one.

School Finance Reports SFS Team collects data in several reports that are used to determine State Aid: Equalization /General Aid Categorical Aids (e.g., State Special Education Aid, Transportation Aid, Library Aid, Per Pupil Aid) Districts access reports via the School Finance Reporting Portal (SAFR)

SFR Reporting Portal

September - December What activities take place relating to the prior fiscal year ( )?

PI 1505-AC and PI-1506-AC PI 1505-AC (was due from district’s on August 28th) – initial “annual” report from districts District data entered on the PI 1505-AC is verified by the auditor via the PI 1506-AC (report completed by the auditor was due on September 11th). The PI-1506-AC is used to calculate the October 15 th Equalization Aid Certification. 17

PI 1505 – Full Annual Report Collects the district’s final revenues, expenditures, assets, liabilities and equity for all funds for the just completed fiscal year Annual Report was due September 18 th. District’s Annual Report should match the district’s PI AC Audit Report (submitted by district’s auditor). DPI completes review of annual reports from now through about February and will contact districts if there are concerns. 18

PI 1505-SE (Spec Ed) Annual Report used to collect the district’s special education (Fd. 27) expenditures for FY Data used to calculate the district’s special education categorical aid Spec Ed Annual Report was due September 18 th. DPI completes review of special education annual reports and will contact districts if there are concerns. 19

PI 1524 State Tuition Report is used to collect data on the costs of educating pupils living in certain institutions or homes (e.g., juvenile correctional facility) within a school district. Data used to calculate a district’s eligibility for State Tuition Payments report was due September 25 th. ◦ “Optional” report – not all districts make claims ◦ Report is NOT within the SAFR – ◦ more information found at: 20

High Cost & Supplemental Special Education Aid Additional reports/claim forms for Special Education expenses. ◦ Not all districts are eligible. ◦ District may claim one or the other – not both. ◦ For additional information on these two aids:

Audit Annual audit of district financial records is required under state law audit due December 1, Independent auditors verify that the financial statements fairly present the balance sheet as of June 30 th and the results of operations for the year ended June 30,

Purpose of the Audit Maintain public confidence in the reliability of published financial data. Assure users that the financial statements are fairly presented in accordance with Generally Accepted Accounting Principles (GAAP). Determine compliance with state and federal requirements. 23

Phases of the Audit Process Planning Preliminary Fieldwork Final Fieldwork Communication with Management Completion & submission of the audit. DPI reviews submitted audits and will contact the auditors & districts with any questions. 24

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September - December What activities take place relating to the current fiscal year ( )?

Finalizing the Budget Finalize Revenue Estimates Under Revenue Limit  General Aid (Equalization, Chapter 220, Special Adjustment)  Tax Levies  Computer Aid Outside Revenue Limit  Categorical Aids (estimate from previous year)  Grants, fees, rent, gifts, gate receipts, etc.  Referenda receipts  Open Enrollment (net positive aid transfer) 27

Finalizing the Budget Finalize Expenditure Estimates  Salaries/Wages/Benefits  Program expenditures(both curricular & extra- curricular)  Facility & Supply expenditures  Food Service costs  Debt Service costs  Open Enrollment (net negative aid transfer)  Voucher Students (negative aid transfer) 28

Finalizing the Budget The district’s budget is a roadmap based on the district’s best estimates. At this point in the year, districts still rely on estimates until October 15 th when the district’s Revenue Limit can be accurately calculated for taxing purposes: ◦ General Aid (using the July 1 st estimate) – including High Poverty Aid ◦ Tax Levy (estimated revenue limit less the July 1 st aid estimate) 29

Finalizing the Budget Potential Categorical Aids ◦ Special Education Aid (state aid, federal grant) ◦ Transportation Aid – Regular and High cost ◦ Library Aid (Common School Fund) ◦ Aid for Nutrition Programs ◦ SAGE Aid ◦ Sparsity Aid ◦ Other Federal Aid (Impact Aid, Title 1, etc.) 30

Finalizing the Budget Program eligibility information can be found at these websites Categorical Aids State & Federal Grants – Sch Mgt Services 31

Budget Hearing & Adoption The Budget Hearing and Adoption process is outlined in § All districts are required to have a budget hearing. Common and Unified High School Districts are required to hold the budget hearing at the same time and place as the annual meeting. 32

Budget Hearing and Adoption School boards are required to approve a “proposed” budget for presentation at the budget hearing. An excel file is available to assist with the recommended format for budget presentation and publication. 33

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Budget Publication School Districts must publish notice of the budget hearing as well as the proposed budget summary. ◦ Common S.D. – at least 10 days prior ◦ Unified and UHS S.D. – at least 15 days prior 35

Budget Hearing Notice 36

Budget Publication Format 37

Annual Meeting State statute (1) identifies the date and time of the annual meeting. ◦ Common S.D. – 4 th Monday in July – 8:00pm ◦ UHS S.D. – 3 rd Monday in July – 8:00pm Unless…… 38

Annual Meeting The electors at one annual meeting vote to hold the following annual meeting at a different date or hour or authorize the school board to establish a different date or hour. No annual meeting may be held before May 15 th or after October 31 st. 39

Annual Meeting Notice School district must publish a Class 2 Notice for the annual meeting. ◦ 1 st Notice – at least 2 weeks prior to meeting ◦ 2 nd Notice – not more than 8 days or less than 1 day prior to the meeting 40

Annual Meeting Notice 41

Original Budget Adoption The school board shall adopt an “original” budget at a school board meeting after the public hearing and no later than the meeting in which the tax levy is set. ◦ November 1 st – deadline for adopting the “original” budget and setting the levy amount ◦ November 10 th – deadline for certifying the levy amount to the municipalities 42

PI 1504 – Budget Report Report used to collect the district proposed revenue and expenses for all funds for the fiscal year. Data will be used to calculate the district’s July 1 st Aid Estimate. §121.15(4)(b). Report due to DPI by November 30,

PI 1504 Special Education Budget Report used to collect the district’s proposed special education (Fd. 27) expenditures and revenues. Data is used to determine maintenance of effort eligibility for federal grants. Report due to DPI by November 30,

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PI 1804 Summer School FTE Report used to collect district FTE (full time equivalency) data for the just ended summer term. ◦ Remember: Summer school starts the school year, so 2015 Summer School is for the school year. FTE data is used in the calculation of Equalization Aid membership as well as a district’s Revenue Limit membership (at 40%). The summer school report collects data on “pupil minutes” and converts to FTE - not a head count. Report is due October 1 st,

Summer School FTE Summer School Membership (FTE) is obtained by: ◦ Calculating the district’s total summer school resident pupil membership minutes for qualified class offerings. ◦ Dividing the total by 48,600 and rounding to the nearest whole number. ◦ A worksheet is available to assist in this process. 47

Summer School Fees Fees for the resident student or parent may be charged for individual use supplies (towels, gym clothes, band instruments, notebooks, pencils), textbooks, or similar items (workbooks) if the district claims state aid under state statute Fees may be charged for social, recreational, or extracurricular summer classes and programs which are neither credited toward graduation nor eligible for state aid [s (4)]. 48

Summer School Fees For any summer school fee charged ◦ The fee must fund an item that is legally permitted and actually purchased for summer school use. ◦ The fee may not be used to subsidize the cost of any other classes or students. ◦ The fee must be based upon the actual cost of the applicable item(s). 49

Audit of Summer School Fees This is the best time to review your district’s use of summer school fees. If your district is required to have a membership audit, the auditor will review your summer school FTE and any associated summer school fees. The auditor will question fees if ◦ the fee does not appear to be legal ◦ the amount of the fee charged per course exceeds the actual cost of the course. 50

Audit of Summer School Fees 51 If a fee is deemed excessive or inappropriate ◦ The summer school FTE claimed will be adjusted or disallowed. ◦ The district will be required to have a membership audit of summer school FTE in the following year.

Summer School Transportation The summer school transportation report is a stand alone report. ◦ Remember: Summer school starts the school year, so transportation for 2015 Summer School is for the school year ◦ The report is due October 1st, 2015 The data from this report will automatically feed into the regular pupil transportation report and will assist DPI in calculating transportation aid to districts. 52

PI 1563 September Pupil Count Report used to collect district membership data for the 3rd Friday in September. Data from the report is converted to full-time equivalency (FTE) and used in the calculation of a district’s Revenue Limit and General/Equalization Aid. Report is due October 2 nd,

General Count Guidelines In general, count the student if ◦ The student is a district resident, and … ◦ The District is financially responsible for the student’s educational program, and … ◦ The student is present for instruction on the count date or meets the “before and after” rule. 54

General Count Guidelines Present – The student is in attendance for instruction on the count date. Absent - The pupil is absent on the count date, but has attended for instruction at least one day during the school year prior to the count date and at least one day during the school year after the count date, and has remained a resident of the district during the period of absence. 55

PI-1563 Pupil Count Process Head Count Identify all students, regardless of residency, being directly served by the district. Resident Reductions Subtract all resident students being served by the district that don’t meet the count guidelines (ex. a student not fully enrolled*). - Non-Resident Reductions Subtract all non-resident students being served by the district*. - Resident Additions Add all resident students who are receiving educational services from other districts or programs and for which your district is paying the cost of full- time tuition. + Adjusted Head Count * Result is the students that are residents for which you are financially responsible for. = *Non-Resident, Home-Schooled, Part Time – enrolled pupils will be added for General Aid membership after the FTE conversion from adjusted headcount (not to the headcount) 56 * Will be converted to a full-time equivalency (FTE)

Converting to FTE by Group Preschool Special Education (.5 FTE) 4 YK – 437 hours (.5 FTE) 4 YK – hours (.6 FTE) 5 YK – ½ day (.5 FTE) 5 YK – 3 full days (.6 FTE) 5 YK – 4 full days (.8 FTE) 5 YK – 5 full days (1.0 FTE) 5YK – Blended (depends) Grades 1 – 12 (1.0 FTE) 57

Preschool Special Education Students must be at least 3 years of age as of the count date. Student must have an IEP (Individualized Education Plan) and be receiving instructional services. No minimum required number of instruction hours Always count as a 0.50 FTE 58

4 Year Old Kindergarten Districts may count in membership if ◦ The 4k program is open to all students, ◦ The 4k program is funded by district resources – (not solely by Title One funds) ◦ The student is at least 4 years old on/before September 1 st 4 Yr – 437 Hours: 437 hours of instruction, which can include up to 87.5 hours of outreach activities 4 Yr – Hours: at least 437 hours of instruction plus 87.5 hours of outreach (may not substitute instructional time for outreach activities) 59

4 Year Old Kindergarten Districts starting a new 4K program will need to verify that the program meets all 4K requirements. Contact Jill Haglund, Early Childhood Education, , with questions. 60

5 Year Old Kindergarten 5 Yr Old – Half Day Program 5 Yr Old – Three Full Day Program 5 Yr Old – Four Full Day Program 5 Yr Old – Five Full Day Program 5 Yr Old – Blended Program The student must be at least 5 years of age on or before September 1 st 61

Grades Students must be 6 years of age on or before September 1 st of the current year or be admitted under early admittance guidelines as defined by the Board of Education. 62

October 15 th Aid Certification The School Financial Services team will provide districts with their current year Certified General Aid amount on October 15 th This represents the General Aid the district will expect to receive* during the year based on the PI 1506-AC data reported from the school year This number should be used in the current year revenue limit calculation. *Excludes open enrollment adjustments 63

Revenue Limits In , revenue limits were implemented to control increases in school property tax levies. Revenue limits are determined on an individual district basis and are not affected by changes in other districts. 64

Revenue Limit The district should be estimating the revenue limit throughout the entire budget development process, but the revenue limit from which the tax is levied cannot be calculated until late October. DPI provides a pre-populated revenue limit worksheet for all districts and adjusts these worksheets as information becomes known. The district is still responsible for the accuracy of the revenue limit computation. 65

Revenue Limit The revenue limit restricts the amount of money a district can receive as a result of ◦ State General Aid ◦ Local property taxes (controlled levy) ◦ Department of Revenue Computer Aid The revenue limit does not include all revenues and it is not a spending limit. 66

Revenue Limit – Exemptions Two Types Recurring (base building) ◦ Carryover ◦ Transfer of Service ◦ Transfer of Territory ◦ Loss of Federal Impact Aid ◦ Recurring Referendum 67

Revenue Limit – Exemptions Two Types Non-Recurring (current yr – not base building) ◦ Non-Recurring Referenda to Exceed ◦ Declining Enrollment ◦ Non-Recurring Energy Exemption ◦ Refunding/Rescinded Taxes ◦ Uncounted prior year Open Enrollment Pupils ◦ Reduction for ineligible Fund 80 Expenditures (-) ◦ Environmental Remediation ◦ Adjustment for New Choice Pupils 68

Revenue Limits - Referenda A successful referendum provides the authority to exceed the revenue limit.  The State does not control when or for what purposes districts should consider a referendum.  The issue of maintaining a school program or voting to exceed the revenue limit is a local decision. 69

PI 1572 Referenda Report Report used to collect data on all district referenda. Districts must notify DPI of an upcoming referendum within 10 days of adopting the resolution. After the referendum vote, the district should update the referendum information to show the vote tally. 70

PI 1572 Referenda Report Information required by DPI ◦ District contact ◦ Purpose of borrowing or use of revenue limit dollars ◦ Dollar amount of the proposed borrowing ◦ Recurring vs non-recurring and the number of years involved ◦ Actual, complete wording of initial resolution and ballot referendum question. 71

PI 1572 Referenda Report Districts are also required to send to DPI a copy of the adopted resolution authorizing election, and; A copy of board of canvassers statement which reports official vote tally within 10 days of the election. pdf to 72

Fund 80 – Community Service 2013 WI Act 306 brought about changes to Fd 80  Required DPI to promulgate rules defining “ineligible” costs -- PI 80  Beginning for the calculation of Revenue Limit, DPI is required to adjust a district’s RL (downward) for any “ineligible” CPS costs in the prior year ( )

Community Service Fees

PI 401Tax Levy Report Report collects the district’s current year tax levies and resulting mill rates. Data from the report is automatically downloaded into tax levy certification forms that are sent by the district to the taxing municipalities. (PI -1508) Data from the report is automatically shared with the Department of Revenue. (PC – 401) 75

Tax Levy On or before November 1, every public school board must approve the levy amounts necessary ◦ to operate and maintain district schools §120.12(3) ◦ to meet any irrepealable tax obligations §120.12(4) School district property taxes include levies for the general operations, debt service, capital expansion and community service funds. On or before November 10, the school district clerk must certify to each municipal clerk the amount of school district tax to be assessed on the tax rolls of that municipality §120.12(3) 76

Late September - December What activities take place relating to the next fiscal year ( )?

Budget Development Although detailed budget development usually does not start until late December or early January, you should be thinking about  Enrollment trends  Changing district dynamics (development, population trends, etc……)  Revenue trends  Impact of salary and benefit changes 78

Budget Development Develop Preliminary Expenditures  Review staffing needs – be aware of policies regarding staff reductions, layoffs, & non- renewals.  Review program offerings to see if expenditure requirements have changed.  Review trends in utilities, insurance & maintenance costs.  Be mindful of state developments. Act 55 provides many changes for public education – make an effort to be informed. 79

Take a deep breath!

We are here to help... Bruce Anderson, Consultant …………… Carey Bradley, Consultant..……………… Dan Bush, Consultant (Spec Ed/Tuition)… Karen Kucharz Robbe, Consultant ……… Gene Fornecker, Auditor …….…………… Brian Kahl, Auditor ………………………… Derek Sliter, Auditor ……………..…… Debi Towns, Ass’t Director ……… Bob Soldner, Director ………………