1. 2011–2012 Accounting Manual Late Changes Daniel Lunghofer Supervisor, SD/ESD Accounting 360.725.6303 Daniel.lunghofer@k12.wa.us

2. Background 2011–2012 Accounting Manual was published in January 2011. Some changes needed due to implementation of Activity 31/32 account codes. Addendum to Bulletin 004-11 was released on August 18, 2011, outlining the changes to the Accounting Manual.

3. Changes – Activity 32 As previously communicated through videoconferences, emails, etc., only Objects 0, 3, 4, 5, 7, 8, and 9 are open for Activity 32. Object 2 is closed. Only classified duty codes are allowed for Activity 32.

4. Instructional Technology Capital Projects Fund One question since implementation of Activity 32 was “What about purchases in the CPF?” CPF Type Code 35 Instructional Technology. For the purchase and installation of instructional technology in the classroom (similar to Activity 32). Items such as repairs are paid for out of the General Fund. More information in Accounting Manual addendum.

5. Implementation Guide An Implementation Guide on Activity Codes 31 & 32 and Type Code 35 is available on the OSPI site. o The 2011–2012 Accounting Manual page, sixth bullet down: http://www.k12.wa.us/safs/ins/acc/1112/am.asp o The 2011–2012 Budget Preparations page, last bullet: http://www.k12.wa.us/safs/11budprep.asp o A direct link: http://www.k12.wa.us/safs/INS/ACC/1112/Activity_ Code_3X_Implementation_Guide.pdf

6. GASB 54 Reporting Yes, you still need to report using GASB 54 terminology starting with 2010–2011. A tool has been developed to help districts categorize their ending fund balance. It is available on the SAFS Tools page: http://www.k12.wa.us/safs/TT/tools.asp http://www.k12.wa.us/safs/TT/tools.asp

7. Total Ending Fund Balance Non- spendable (GLs 840, 855) Spendable Restricted (GLs 810, 815, 921, 830, 835, 845, 850, 86X) “Unrestricted” Committed (GLs 870, 872) Assigned (GLs 875, 884, 888, 889) Unassigned (GL 890)

8. Food Service Balance If your district makes money on its food service program (XX98 revenues exceed Program 98 expenditures), any excess money generated is Restricted Fund Balance. For now, record any excess food service program income in GL 821 Restricted for Carryover of Restricted Revenues. Additional guidance will be forthcoming, covering topics such as indirect costs.

9. ASB Fund Balance Previously, the question of “Where do we record ending ASB Fund Balance?” was answered with “Restricted.” UPDATE: for Spendable Fund Balance in the ASB Fund, except for amounts that have a legal Restriction or are otherwise Committed, residual fund balance in the ASB Fund may be reported as Assigned Fund Balance (GL 889).

10. Special Education Maintenance of Effort Districts who see an increase in their IDEA allocation from the prior year may reduce their IDEA expenditures by 50% of the increase. In 2009-10, all IDEA money from ARRA was added to each district’s IDEA allocation amount for MOE purposes. Due to this, no district’s 2010-11 IDEA allocation exceeds their 2009-10 IDEA allocation. Thus, no district will be able to utilize the 50% reduction rule for 2010-11.