1. Daniel Bush, DPI School Financial Services WASBO Accounting Conference March 19, 2014

2.  Audit Procedures  Finding Follow-Up  Highlighted Findings/Issues

3. Step-by-step

4.  Required: Actual total = Reported total  Helpful: Actual = Reported, by project PI-1505-SE Reported Values from district’s online report District’s general ledger

5. Townsville (9999) 123456 789012 Tyler, Rose Smith, Sarah Jane Chesterton, Ian Wright, Barbara Pond, Amelia Jovanka, Tegan McCrimmon, Jamie Oswald, Clara Grant, Jo

7.  Any staff listed under “Educators Without Valid Licenses”  Auditor identifies incorrectly licensed staff as questioned cost (e.g. late hire)

8.  Used to correct NVL report when ◦ Position/area incorrect from district’s PI-1202 ◦ License issued after NVL check run in June

9. Townsville (9999) 123456 789012 Tyler, Rose Smith, Sarah Jane Chesterton, Ian Wright, Barbara Pond, Amelia Jovanka, Tegan McCrimmon, Jamie Oswald, Clara Grant, Jo

10.  Does employee’s work assignment match payroll coding? WUFAR Function NamePositionAreaFTEGrades Begin – End Contracted Agency Long-Term Substitute 158000McCrimmon, Jamie53 – Teacher0811 – Learning Dis1.0011 – 12NN SCHOOL DISTRICT OF TOWNSVILLE PAYROLL REPORT 2013-2014 ----------------------------- MCCRIMMON, JAMIE A DPI LIC: 990115 53/0811 DOB: 12/17/1966 ACTIVE: 09/01/1994-06/15/2014 --------------- RECORD 01 OF 01 --------------- SCHOOL: TOWNSVILLE HIGH FTE: 1.0 CONTRACT: REG YR POSITION: TEACHER ASSIGNMENT: SPED LD 11-12 WUFAR: 27 300 158410 SALARY 110 86,520.00 WRS 211 4,326.00 OPEB 218 2,140.00 FICA 222 6,618.78 DENTAL 243 3,050.00 HEALTH 248 18,633.00 LT DISAB 251 825.15 ---------- 122,112.93

11.  310 Personal Services aidable with ◦ 218100 Occupational Therapy ◦ 218200 Physical Therapy ◦ 256700 Contracted Pupil Transportation  342 Employee Travel aidable with ◦ 156200 Special Education Homebound ◦ 174200 School-Age Parent Homebound  370 Payment to Non-Gov’t aidable with ◦ 436000 Contracted Instruction  Audiology, interpreter, orientation & mobility, speech & language therapy, or transition services  2013 SB 271: Special ed aides and substitutes NEW

12.  Pupil transportation in Fund 27, project 011  Did all pupils have transportation in IEP? ◦ Exceptions:  Listed in another pupil’s IEP (e.g. peer mentor)  Picked up at same location, didn’t displace another pupil with IEP, didn’t increase route cost/capacity  Pupils going to/from school also counted for Transportation Aid? (part of transportation audit program) NEW

13.  Accounts 27E-253600-550 and -560  More than $10,000  Approval for vehicle purchase on file ◦ Project 011: Letter from DPI ◦ Project 340: Approved IDEA budget item

14.  Accounts 27E-437000-382 and 27R-000000-347  Any amount  Is there a PI-2092 open enrollment tuition agreement on file?  Is flat-rate portion of each pupil’s tuition coded to 10E-435000-382 or 10R-000000-345? ◦ 2013-14 rate: $6,485 NEW

15.  Write up findings in audited financials ◦ Identify questioned costs with specific amounts and account coding where necessary  Obtain PI-1505-SE Aid Estimate from district’s online report and identify total on “Schedule of State Awards”

16.  Email to dpisfsreports@dpi.wi.gov:dpisfsreports@dpi.wi.gov ◦ Completed NVL worksheet—submit actual Excel workbook, not PDF or scan  All “Educators Without Valid Licenses”  Any additional questioned costs  Reflect account coding after any corrections ◦ Confirm whether district agrees or disagrees ◦ Supporting documentation as appropriate  District’s representation letter  Copy of license certificate—not DPI website printout  Payroll records  Other appropriate documentation

17. What happens next?

18.  SFS consultant may request more information  Negative adjustments applied as necessary to aidable costs on PI-1505-SE (reduces aid)  Challenged findings: ◦ Special Education Team reviews licenses and makes eligibility determinations ◦ District and auditor contacted with result ◦ Adjustments reduced/removed as necessary (additional aid in subsequent payments)

19.  SFS auditors review financials and forward findings to consultants as appropriate  SFS consultant emails letter to district requesting information  District responds, further discussion/ clarification may be required  SFS consultant informs district of decision ◦ Negative adjustments applied as necessary to aidable costs on PI-1505-SE (reduces aid)

20. Areas of concern in the field

21.  New exception for riders without IEPs ◦ Pickup/dropoff at same location ◦ No rider with IEP displaced ◦ Doesn’t increase cost/capacity of route NOTE: Additional rider specified in IEP (e.g. peer mentor) already allowed  Common findings ◦ Pupils without IEPs transported on aidable route ◦ Pupils on aidable route to/from school also counted for Pupil Transportation Aid

22.  NVL finding fairly common  Unusual situations ◦ Having all aides get 883 licenses and coded all salary and benefits to Fund 27, project 011 ◦ Updating PI-1505-SE after auditor submitted NVL report ◦ Claiming part of a principal’s time as aidable SPED supervision/coordination

23.  Not coding flat-rate OE base to Fund 10  Using OE flat-rate amount for non-OE tuition, improperly coding it to Fund 27  Non-SPED tuition coded to Fund 27  Contract and 66.0301 coding ◦ Only instruction coded to 436000 ◦ Pupil services (e.g. psych, OT, PT) coded to their respective functions

24.  Costs funded by IDEA coded to 340 projects ◦ 341 Flow-Through ◦ 347 Preschool ◦ 349 Discretionary (e.g. seclusion & restraint training grants, CESA regional service network)  Claims can be submitted up to 3 months after end of fiscal year  Many LEAs not reconciling final claims to project 340, not updating books after late claims submitted

25.  Audit Manual: http://sfs.dpi.wi.gov/sfs_aud_list http://sfs.dpi.wi.gov/sfs_aud_list  Special Ed/SAP Categorical Aid: http://sfs.dpi.wi.gov/sfs_speced http://sfs.dpi.wi.gov/sfs_speced  SFS Consultant: Daniel Bush daniel.bush@dpi.wi.gov 608-267-9212 daniel.bush@dpi.wi.gov