1. The Other Funds Funds 21, 41, 60, 72, 73, 80 & 90 WASBO Accounting Conference New Business Office Staff Track Brian Kahl DPI School Finance Auditor Bob Soldner SFS Team Director March 2014

2. Agenda The Main Funds The Other Funds – 21: Special Revenue Trust Fund – 41: Capital Expansion Fund – 60: Agency Fund – 72: Private Purpose Trust Fund – 73: Employee Benefit Trust Fund – 80: Community Service Fund – 90: Package & Cooperative Program Fund 2 "The Other Funds" - WASBO Acct Conference March 2014

3. The Main Funds General Fund Special Education Debt Service – Non-Referendum – Referendum Capital Projects Food Service F-10 F-27 F-38 F-39 F-49 F-50 3 "The Other Funds" - WASBO Acct Conference March 2014

4. The Other Funds Special Revenue Trust Fund Capital Expansion Fund Agency Fund Private Purpose Trust Fund Employee Benefit Trust Community Service Fund Package & Cooperative Program Fund – Packaged Services (CESA) – Other Package & Coop Pgm F-21 F-60 F-80 F-90 F-73 F-41 F-91 F-99 4 "The Other Funds" - WASBO Acct Conference March 2014 F-72

5. Fund 21 Account for trust funds that can be used for district operations Sources – Gifts – Donations from Private Parties Expended pursuant to donor specifications, if any May carry a fund balance 5 "The Other Funds" - WASBO Acct Conference March 2014

6. Fund 21 How to use this fund? District or staff controlled “activity” accounts Fund raisers Targeted donations Tournaments or Competitions 6 "The Other Funds" - WASBO Acct Conference March 2014

7. Fund 21 Permanent Fund – Should be used to report resources that are legally restricted to the extent that only earnings and not principal, may be used for purposes that support the district’s programs – Resources should benefit the government – Need to keep the corpus intact 7 "The Other Funds" - WASBO Acct Conference March 2014

8. Fund 21 District/Staff “activity” funds Activity groups where staff decides how to raise funds and how to appropriate them – Athletic Fundraisers – School Fundraiser (Example – Field Trips) – Band Uniforms – School Musical 8 "The Other Funds" - WASBO Acct Conference March 2014

9. Fund 21 Why would you use Fund 21 instead of Fund 10? Shared Cost (Deductible Receipt if in Fund 10) Carry balances from year to year Comply with donor wishes if any restrictions placed on use of funds 9 "The Other Funds" - WASBO Acct Conference March 2014

10. Fund 21 Accounting Transactions Ledger Accounts – Revenues – Expenditures Balance Sheet Accounts – Assets – Liabilities – Equity (Fund Balance) 10 "The Other Funds" - WASBO Acct Conference March 2014

11. Fund 21 More information: When to Use Fund 21 http://sfs.dpi.wi.gov/files/sfs/doc/fund21.doc WIAA and Other Tournaments and Competitions http://sfs.dpi.wi.gov/files/sfs/doc/tournaments_hosted.doc 11 "The Other Funds" - WASBO Acct Conference March 2014

12. Fund 60 Agency Fund Used primarily to account for assets held by the district on behalf of pupil organizations Parent organization funds may be accounted for here – May not be a separate 501(c)(3) 12 "The Other Funds" - WASBO Acct Conference March 2014

13. Fund 60 Agency Fund Only balance sheet accounts (assets & liabilities) are reported in Budget and Annual reports But… Records of receipts and disbursements must be maintained locally and will be examined during audit 13 "The Other Funds" - WASBO Acct Conference March 2014

14. Fund 60 Pupil Organizations Funds are held by the district for the benefit of the student organizations – District has a fiduciary responsibility Students are the decision makers on how to raise money and how to spend it – Staff advisers only advise, do not decide 14 "The Other Funds" - WASBO Acct Conference March 2014

15. Fund 60 Pupil Organizations Student Council Class of 20XX National Honor Society Yearbook Drama Club Foreign Language Club Other Clubs 15 "The Other Funds" - WASBO Acct Conference March 2014

16. Not Fund 60 Activities where staff make the decisions are District Activities and accounted for elsewhere Examples: – Athletics – Musical – Band Uniforms – Field Trips – Shop Class – Sunshine Club / Coffee Fund* Should NOT appear anywhere on the district’s books. These are not district funds. 16 "The Other Funds" - WASBO Acct Conference March 2014

17. Fund 60 Accounting Transactions Assets – 711000: Cash – 712000: Investments Liabilities – 814000: Due to Student Organizations Equity – None 17 "The Other Funds" - WASBO Acct Conference March 2014

18. Fund 60 Parent Organizations District may establish agency funds for parent organizations – Bank accounts in the name of the district – Same policies/procedures as for student organizations Liability Acct 818000: Due to Parent Organizations Parent organizations may not use the district’s tax ID number Parent organizations may not be a separate 501(c)(3) 18 "The Other Funds" - WASBO Acct Conference March 2014

19. Fund 60 More information: Agency Fund Guidelines document http://sfs.dpi.wi.gov/files/sfs/doc/stud_acct.doc Audit Program for Pupil Activity Accounts http://sfs.dpi.wi.gov/files/sfs/pdf/student_activity_fu nds.pdf http://sfs.dpi.wi.gov/files/sfs/pdf/student_activity_fu nds.pdf 19 "The Other Funds" - WASBO Acct Conference March 2014

20. Fund 41 Capital Expansion Fund Projects financed with a tax levy per Wis. Stats. 120.10(10m) – Levy is within the Revenue Limit Restricted to capital expenditures related to buildings and sites – Not equipment – Not furnishings Requires approval at Annual Meeting 20 "The Other Funds" - WASBO Acct Conference March 2014

21. Fund 41 Eligible expenditures defined: For acquiring and remodeling buildings and sites, and Maintenance or repair expenditures that Extend or enhance the service life of building, building components, sites and site components 21 "The Other Funds" - WASBO Acct Conference March 2014

22. Fund 41 Why use Fund 41? Allows for depreciation of expenses over length of time In year of spending - Reduces shared costs in aid formula – Can reduce the impact of negative tertiary aid for districts in that position – Smoothes out aid for positively aided districts. 22 "The Other Funds" - WASBO Acct Conference March 2014

23. Fund 41 Disadvantage Restricts use of limited revenues to qualifying capital expansion projects – Cannot be redirected to use for general operations or routine maintenance Creates additional accounting / reporting requirements 23 "The Other Funds" - WASBO Acct Conference March 2014

24. YrLevyExpend.Amortized Expenditures Total Amort. 1$105,000$100,000 2$105,000$100,000$50,000 3$105,000$100,000$50,000$33,333$83,333 4$105,000$100,000$33,333$25,000$58,333 5$105,000$100,000$33,334$25,000$20,000$78,333 6$0$25,000 $20,000$5,000$50,000 7$0 $25,000$20,000$5,000$50,000 8$0 $20,000$5,000$25,000 9$0 $20,000$5,000$25,000 10$0 $5,000 T$525,000 $100,000 $25,000$525,000 Fund 41 Amortizing Expenditures Over Time 24 "The Other Funds" - WASBO Acct Conference March 2014

25. Fund 41 A Capital Expansion document and PowerPoint can be found on the finance team page in the WUFAR link: http://sfs.dpi.wi.gov/sfs_wufar http://sfs.dpi.wi.gov/sfs_wufar Click on: Accounting Issues and Coding Examples Accounting Issues and Coding Examples or go directly to: http://sfs.dpi.wi.gov/files/sfs/doc/cap_expans_publish.doc http://sfs.dpi.wi.gov/files/sfs/ppt/cap_expans_publish.ppt 25 "The Other Funds" - WASBO Acct Conference March 2014

26. Fund 72 Private Purpose Trust Fund Account for gifts and donations specified for the benefit of private individuals and organizations not under the control of the school board – Board acts as Trustee of account – Example: Scholarship Fund – Expenditures are made pursuant to donor specifications 26 "The Other Funds" - WASBO Acct Conference March 2014

27. Fund 73 Employee Benefit Trust Fund Used to account for resources held in trust for formally established defined benefit plans, defined contribution plans, or employee benefit plans Must be legally established in accordance with state statutes, federal law, and IRS requirements Legally irrevocable trust 27 "The Other Funds" - WASBO Acct Conference March 2014

28. Fund 73 Employee Benefit Trust Fund Created as a mechanism for districts to fund post- employment benefit obligations Districts not required to use this – May opt to “pay as you go,” however, that does not help reduce the long-term liability Requires actuarial study to determine funding levels 28 "The Other Funds" - WASBO Acct Conference March 2014

29. Fund 73 Employee Benefit Trust Fund District makes payments to the trust from the governmental funds (Funds 10, 27, 50, and 80) to fund annual obligations. Fund 73 pays the retiree benefits 29 "The Other Funds" - WASBO Acct Conference March 2014

30. Fund 73 Why use Fund 73? To reduce the district’s long- term unfunded obligations. Costs to Special Education Fund are aidable up to the ARC if one of the three criteria are met. 30 "The Other Funds" - WASBO Acct Conference March 2014

31. Fund 73 More information: Employee Benefit Trust Fund webpage http://sfs.dpi.wi.gov/sfs_emp_benefit_trust_fund Employee Benefit Fund Requirements webpage http://sfs.dpi.wi.gov/files/sfs/doc/EBFRequirements.doc Fund 73 OPEB Transaction Accounting Samples http://sfs.dpi.wi.gov/files/sfs/Accounts%20to%20use%2 0for%20Fund%2073%20trust.doc 31 "The Other Funds" - WASBO Acct Conference March 2014

32. Fund 80 2013 Wisconsin Acts 20 & 46 – District Levy Authority is Limited in 2013-14 & 2014-15 – Hold a Referendum to Exceed Levy Limit – Reporting Requirements District’s Website District Complete DPI Fund 80 Survey DPI Report to Legislature (12/1/14) 32 "The Other Funds" - WASBO Acct Conference March 2014

33. Fund 80 Community Service Fund Used to account for all activities that have the primary function of serving the community (not public school programs) District may adopt a separate levy, outside revenue limits, for this Fund – Does not impact aid calculation 33 "The Other Funds" - WASBO Acct Conference March 2014

34. Fund 80 Statutory References School Board authority to establish – Wis. Stats. 120.13(19) Budget reporting requirements – Wis. Stats. 65.90 Adoption of a separate levy – Wis. Stats. 120.10(8) – Wis. Stats. 120.12(3) 34 "The Other Funds" - WASBO Acct Conference March 2014

35. Fund 80 Community Service Fund Access to activities cannot be limited to pupils enrolled in the district’s K-12 education programs Excluded are any academic subjects and extra-curricular activities available only to pupils enrolled in the district 35 "The Other Funds" - WASBO Acct Conference March 2014

36. Fund 80 Community Service Fund Examples: – Community softball leagues – Elderly nutrition programs – Non-Special Educ pre-school – Day care services – Evening community swimming and pool operations – Adult education 36 "The Other Funds" - WASBO Acct Conference March 2014

37. Fund 80 Allowable Expenditures Non-instructional – May include cost allocations for salaries, benefits, purchased services, etc. – Directly related to the activity included in Fund 80 37 "The Other Funds" - WASBO Acct Conference March 2014

38. Fund 80 Questions to Ask Is the program outside the usual instructional program? Is the program available to everyone in the community (age appropriate)? Is the program fee supported? If “YES,” then the program may be appropriately included in the Community Service Fund 38 "The Other Funds" - WASBO Acct Conference March 2014

39. Fund 80 Do NOT recommend including District/Building administration Facilities used by the instructional or extra-curricular program Welfare/safety expenditures related to K-12 instructional or extra-curricular program – Police Liaison Officers – Crossing Guards 39 "The Other Funds" - WASBO Acct Conference March 2014

40. Fund 80 Pro-rating of other costs We do not recommend costing these costs in Fund 80 UNLESS they are directly associated and fully documented: – Custodial costs – Security costs – Utility costs 40 "The Other Funds" - WASBO Acct Conference March 2014

41. Fund 80 Key Question to Ask If the program in Fund 80 ended, would some costs shift to Fund 10? – Custodial costs: If Fund 80 program ended, would there be a reduction in custodial hours? If YES, then appropriate for Fund 80. – Utilities: Would utilities be reduced if the program ended, or shifted to Fund 10? If REDUCED, then appropriate for Fund 80. 41 "The Other Funds" - WASBO Acct Conference March 2014

42. Fund 80 Construction and Debt Service Recommend not charging construction or related debt service costs for education facilities even if it may be used by the community – Exception: facility is not used for instructional purposes at all, only for community recreation. 42 "The Other Funds" - WASBO Acct Conference March 2014

43. Fund 80 Infrastructure Costs Recommend that construction and/or infrastructure maintenance costs not be accounted for in Community Service Fund even if used at times by the community Examples – Sidewalks – Parking Lots 43 "The Other Funds" - WASBO Acct Conference March 2014

44. Fund 80 More information: Community Service Fund Information webpage http://sfs.dpi.wi.gov/sfs_comm_serv http://sfs.dpi.wi.gov/sfs_comm_serv Community Service Fund presentation http://sfs.dpi.wi.gov/files/sfs/ppt/comm_ser_fnd.ppt 44 "The Other Funds" - WASBO Acct Conference March 2014

45. Fund 90 Package and Cooperative Program Fund Used to account for expenditures made by a host district for programs and services offered to other districts – Fund 91: Through a CESA – Fund 99: Others 45 "The Other Funds" - WASBO Acct Conference March 2014

46. Fund 91 Host District CESA acts as fiscal agent for the districts in the cooperative – Other districts pay CESA their share – Host district pays CESA for its share Expenditure to F-10 – CESA reimburses host district for all program expenditures – No fund balance allowed 46 "The Other Funds" - WASBO Acct Conference March 2014

47. Fund 99 Fiscal Agent District District that acts as the fiscal agent for the districts in the cooperative – Other districts pay host district their share – Host district transfers from F-10 its share of costs Revenue to F-99 Expenditure to F-10 – Pays all expenditures for program – No fund balance allowed 47 "The Other Funds" - WASBO Acct Conference March 2014

48. Fund 99 Examples of Cooperative Services Hockey Co-op Swim Team Co-op Transportation Services Business Education Program REQUIRES completion of a “66:30 Agreement” Wis. Stats. 66.0301 48 "The Other Funds" - WASBO Acct Conference March 2014

49. Fund 90 Package & Cooperative Services NOTE: Shared Special Education services are recorded in F-27 not in F-90. 49 "The Other Funds" - WASBO Acct Conference March 2014

50. Fund 90 More information: Cooperative Service Agreement 66.0301 webpage http://sfs.dpi.wi.gov/sfs_coop_agree 50 "The Other Funds" - WASBO Acct Conference March 2014

51. THANK YOU! Questions? Contact Information  Bruce Anderson, Consultant 608-267-9707  Carey Bradley, Consultant 608-267-3752  Karen Kucharz, Consultant 608-266-3464  Brian Kahl, Auditor 608-266-3862  Gene Fornecker, Auditor 608-267-7882  Michele Gundrum, Auditor 608-267-9218  Erin Fath, Asst Director 608-267-9209  Bob Soldner, Director 608-266-6968 51 "The Other Funds" - WASBO Acct Conference March 2014