1. Gene Fornecker, Brian Kahl and Michele Gundrum

2.  New Fund ◦ Capital Improvement Fund  Community Service Fund ◦ Wisconsin Statute Changes  Common School Fund  New Special Education Audit Program  New State Program ◦ High Cost Transportation Aid  Common State Audit Findings  Due Dates  Misc. Matters  Break  WUFAR Update  Food Service Program ◦ Bad Debts & Student Accounts  Corrective Action Plans  Energy Efficiency Exemption  CESA Reporting  Desk Reviews and Site Visits  Auditor Questions

3. Fund 46

4.  2013 Wisconsin Act amended Wisconsin Statute 120.137 ◦ A school board that has approved a long-term capital improvement plan may create a long-term capital improvement trust fund ◦ for the purpose of financing the costs of the capital improvements included in the school board’s approved long-term capital improvement plan ◦ A “long-term capital improvement plan” is a capital improvement plan for at least a 10 year period as defined in this statute

5. ◦ A school board may not expend money deposited in a long-term capital improvement trust fund for a period of 5 years beginning on the date the trust fund is created ◦ NO EXPENDITURES FOR 5 YEARS ◦ Fund 46 is funded with a transfer from Fund 10

6.  After the 5-year period a school board may make expenditures from a long-term capital improvement trust fund solely for the purposes described in the school board’s approved long-term capital improvement plan and  May not transfer money from a long-term capital improvement trust fund to any other school district fund

7.  General Aids Audit Program ◦ Review District Board minutes  If the establishment of a capital improvement fund has been approved by the board, determine that the board has also approved the long-term capital improvement plan that is for a minimum of 10 years

8. ◦ Summary  Board approved  Must have a board approved 10 year capital improvement plan  NO EXPENDITURES FOR 5 YEARS  Funded with a transfer from Fund 10  Can only use Fund 46 to fund the capital improvement plan projects

9. New Legislation

11.  Wisconsin Statute 120.13 (19) ◦ C OMMUNITY PROGRAMS AND SERVICES. Establish and maintain community education, training, recreational, cultural or athletic programs and services, outside the regular curricular and extracurricular programs for pupils, under such terms and conditions as the school board prescribes ◦ The school board may establish and collect fees to cover all or part of the costs of such programs and services ◦ The school board may not expend moneys on ineligible costs as defined by the department by rule

12.  2013 Wisconsin Act 20 (the 2013-15 State Budget) includes changes in state law with respect to a school board’s levy authority under statute 120.13(19) which is the community programs and services levy  Prior to Act 20 the amount levied by a school board into Fund 80 was not restricted

13.  Wisconsin Act 20 Levy Limits ◦ Imposes a limit on the amount a board may levy into Fund 80 for the 2013-14 and 2014-15 school years  No school board may levy more for community programs and services for the 2013-14 and 2014-15 school years than it levied in Fund 80 in the most recent year preceding 2013 in which it levied for community programs and services (Fall of 2012)

14.  Wisconsin Act 20 Levy Limits ◦ A school board may exceed the Fund 80 levy limit if it meets all the following requirements:  The board adopts a resolution to exceed the limit by a specified amount  The board submits the resolution to the electors of the school board district for approval  The majority of those voting on the question approve the resolution

15.  2013 Act 46 amends the 2013 Wisconsin Act 20 limitations on community programs and services ◦ Act 46 will allow a school board to use its 2011 community programs and services levy as its limit if both of the following applies:  (1) the 2011 community programs and services levy is more than the 2012 community programs and services levy; and  (2) either the 2011 or 2012 community programs and services levy was less than $1,000,000

16.  Wisconsin Act 20 Reporting Requirements ◦ School districts are required to include Fund 80 expenditure information in their budget summaries for levies that will be established in the fall of 2013 and 2014 for the 2013-14 and 2014-15 school years ◦ The budget summary for the accompanying budget hearing must identify Fund 80 expenditures and indicate how those expenditures meet the criteria for community service funds

17.  Wisconsin Statute 120.14 (1) At the close of each fiscal year, the school board of each school district shall employ a licensed accountant to audit the school district accounts and certify the audit. The audit shall include information concerning the school district's self-insurance plan under s. 120.13 (2) (b), as specified by the commissioner of insurance, and information about expenditures for community programs and services under s. 120.13 (19).120.13 (2) (b)120.13 (19)

18.  2013 ACT 306 ◦ The bill decreases a school district’s revenue limit by the amount of its ineligible expenditures for community programs and services ◦ This act first applies to the calculation of a school district’s revenue limit for the 2015-16 school year

19. Wisconsin Statute Change

20.  Up to 100% of the moneys received in a fiscal year may be used to purchase computers and related software if the computers are housed in the library  Computers and related software would include: ◦ Equipment additions ◦ Equipment replacement ◦ Capital lease principal

22.  The following objects in function 222 000 “Library Media” expenditures qualify as eligible “instructional media” expenditures for Common School Fund Aid: Object Description 431 Audio-Visual Media 432Library Books 433 Newspapers 434 Periodicals 435 Computer Software Programs 438 Microfilm 439Other Media  Examples of eligible and ineligible expenditures can be found at http://imt.dpi.wi.gov/imt_csf_expl.http://imt.dpi.wi.gov/imt_csf_expl

24.  Allows privately contracted special education substitutes & aides for categorical aid  The FY14 costs are allowed for special education categorical aid and the IDEA grant. ◦ Means categorical aid would be received in FY15.  Coded to 27E-436000-370-011 for special education categorical aid or project 34x for the IDEA grant  Staff must still be properly licensed 24School Financial Services Team

25.  IDEA projects restricted to IDEA allowables  New projects for Title I extended school year  Some functions deleted (e.g. 251000)  Some summary functions replaced with detail (e.g. 231500 & 231700 for 230000)  Non-SPED instruction restricted to salary/benefits for IEP development/training  Indirect cost transfers and grant revenue transits restricted to grant projects  Effective 7/1/2014 for FY 2015 25School Financial Services Team

26.  A pupil without IEP-documented transportation needs may ride an aidable or IDEA-funded specialized transportation route if:  Picked up and dropped off at same location as student with IEP transportation needs  Doesn’t displace a pupil with IEP needs  Doesn’t increase cost of or capacity needed for route  Must be documented by district, supportable to the auditor—not monitored/approved by DPI  Exception doesn’t include an accompanying rider as specified in rider’s IEP, this is already allowed 26School Financial Services Team

27.  Problem: Unpredictable payment timing wreaking havoc with districts’ MOE  Solution:  SBS interim claim payments coded to Fund 27, source 780  MAC and cost settlement payments coded to Fund 10, source 780  Prior year reconciliation payments coded to Fund 10, source 780  Current year repayments coded to 27E-492000-971-019  Prior year recoupments coded to 10E-492000-971  Updated doc on WUFAR Issues & ExamplesWUFAR Issues & Examples 27School Financial Services Team

28.  All flat rate tuition expenditures and revenues should be coded to Fund 10. ◦ This is the open enrollment flat rate calculated by DPI.  Applies to both open enrollment and non-open enrollment tuition agreements  Only specific additional special education costs are coded to Fund 27  More guidance on WUFAR Accounting Issues and Coding Examples under Interdistrict Transactions:  http://sfs.dpi.wi.gov/files/sfs/pdf/open_enrollment _wufar.pdf http://sfs.dpi.wi.gov/files/sfs/pdf/open_enrollment _wufar.pdf 28School Financial Services Team

30.  New Categorical Aid to be received in June of 2014 ◦ Additional funding to districts that have higher per pupil transportation costs when compared to the statewide average  Excludes Specialized Transportation costs  Costs must exceed 150% of the statewide average  Appropriation is $5,000,000

31.  Receiving aid ◦ Current year aid is based on prior year data ◦ Districts do no fill out a claim for aid ◦ DPI Calculation is based on:  Audited regular transportation costs  Audited Membership information ◦ Revenue coded to Source 619

32.  128 districts receiving aid in June ◦ Range is $304.13 to $179,106.79 ◦ 60 districts receiving less than $25,000 ◦ 29 districts receiving between $25,000 - 50,000 ◦ 30 districts receiving between $50,001 - 100,000 ◦ 9 districts receiving more than $100,000

33.  DPI will not provide audit program  If this program is selected, pull High Cost Transportation Aid spreadsheet located at (SFS home page - Aid Information):  http://sfs.dpi.wi.gov/sfs_aid_info_all_types http://sfs.dpi.wi.gov/sfs_aid_info_all_types ◦ Unhide columns C-I on the spreadsheet

34.  Trace the amounts in columns C-I back to the district’s ledger ◦ If discrepancy is found, please notify DPI and possible audit finding

35.  For issues relating to this program, please contact: Bruce Anderson, School Finance Consultant (608) 267-9707 bruce.anderson@dpi.wi.gov

37. Mostly Pupil Transportation and Special Education ◦ Around 60 Pupil Transportation Findings ◦ Around 30 Special Education Findings ◦ Two Common School Findings ◦ Two General Aids Findings

38.  Common Findings ◦ Wrong mileage category  16 findings  Also no procedure in place to verify mileage ◦ Students receiving specialized transportation included on the pupil transportation report  9 findings ◦ District did not have adequate records  7 findings

39.  Hazardous transportation related findings ◦ Students classified under 0-2 miles, but didn’t fit into hazardous plan  5 findings ◦ District does not have an updated hazardous transportation plan  2 findings

40.  Days enrolled related findings  Days enrolled was not correct  Student didn’t ride at all during the year, but was counted. Student must ride at least one time during the year and then days enrolled is used.  Days enrolled was never reviewed  All students reports as enrolled over 90 days, no system in place to review this

41.  Common Findings ◦ Teacher or aide not properly licensed  21 findings ◦ Special Education students receiving specialized transportation, but not required based on their IEP.  4 findings ◦ General education students on specialized routes  2 findings

42.  General Findings ◦ District didn’t perform reconciliation ◦ District performed reconciliation, but adjustments had to be done or not done correctly ◦ No documentation or documentation didn’t support numbers on reconciliation

43.  Summer School Findings - 30 districts ◦ District doesn’t track expenses by class ◦ District charges flat fee, revenue exceeded cost ◦ Students were overcharged for class ◦ No attendance records ◦ 10 districts lost a total of 144 FTE after DPI review  For auditors ◦ Fee should equal or be less than actual cost  Could be from current invoices or taken from inventory ◦ List amounts by course, not total revenue and exp ◦ If flat fee, how much? ◦ Verify allowable costs

45. District reports ◦ PI-1505 AC  Due August 29  Opens July 14 ◦ PI-1505 and PI-1505 SE – Both the Full and the Special Education Annual Reports  Due September 19  Opens July 14

46. Auditor reports ◦ Auditor Certification PI-1506 AC  Due Friday, September 12  Opens July 14  New Approval Process???? ◦ Audited Fund Balance PI-1505 FB  Due Friday, September 12  Opens July 14 ◦ Special Education No Valid License Worksheet  Due Friday, September 19  Send completed xls document to: dpisfsreports@dpi.state.wi.us dpisfsreports@dpi.state.wi.us ◦ Audited Financial Statements  Due December 1, 2014

47. Audit reports for the fiscal year ended June 30, 2014 must be filed to DPI in PDF format by December 1: auditreports@dpi.state.wi.us ◦ Audited financial statements ◦ Management letters, SAS 115 Communications of Internal control matters, and any SAS 114 Communication with Those Charged with Governance ◦ Single Audit reports if issued separately ◦ Data Collection Form (YES! WE WANT IT!)

49.  Shared Costs ◦ Must go to an irrevocable account to be counted as an expenditure  OPEB Trust  HRA account (custodial agreement must be irrevocable)  District CAN’T get money back  Expenditure in following year is reduced if there are forfeitures  NOT REVENUE TO A DISTRICT - No revenue is recorded. Expenditure is less in following year.

50.  Pay actual costs of medical claims ◦ The actual costs are expenditures that year.  Example: Employee gets $2,000 HRA every year. Claims are only $1,500. Only $1,500 should be an expenditure.  District pays full amount to another account every year ◦ MUST GO INTO AN IRREVOCABLE ACCOUNT to be counted as an expenditure in that year. ◦ If not in an irrevocable account, the expenditure should only be exact medical costs.

51.  HRA, TSA and other employee benefit accounts ◦ Adding a step in the General Aids Audit program ◦ If a district is making a contribution into an HRA fund, it must go into an irrevocable account. ◦ May or may not be accounted for in Fund 73 ◦ Guidance for all HRA accounting can be found at: http://sfs.dpi.wi.gov/files/sfs/pdf/HRA_and_HSA.pdf

52.  Many districts are writing these checks off ◦ Source 971-Refund of a prior year expenditure  This isn’t money that should go back to the district  These funds are Unclaimed Property ◦ Unclaimed Property is a financial or property asset that belongs to an individual, business or governmental entity. Property is considered abandoned when there has been no owner contact for a set period of time, 5 years for vendor and 1 year for payroll.

53.  This applies to most public and private entities, including school districts  The Wisconsin Department of Revenue administers the program.  There is no minimum amount of unclaimed property, it must be reported regardless of how low the value is. ◦ For aggregate amounts over $50, the holder must attempt to contact the owner (due diligence) prior to reporting the funds as unclaimed property. These due diligence letters must be sent no more than 120 before the unclaimed property report is filed.

54.  Wisconsin Department of Revenue  Basic program info  http://www.revenue.wi.gov/ucp/ http://www.revenue.wi.gov/ucp/  Unclaimed Property Reporting Guide  http://www.revenue.wi.gov/forms/ucp/ 2013_Holder_Report_Guide_LP.pdf http://www.revenue.wi.gov/forms/ucp/ 2013_Holder_Report_Guide_LP.pdf

55. Issues

56.  OMB Circular A-87: Bad debts are unallowable costs for federal programs ◦ Prior year bad debt: district should transfer an equivalent amount from Fund 10 to Fund 50 to cover the amount of deficit ◦ Current year bad debt: abate the uncollectible portion against current year revenues

57.  Districts utilizing automated point of sale student account systems to collect funds and recognize food service revenues  A year end report should be received detailing ‘unearned revenues’ on hand  District should be reviewing outstanding balances including any ‘debit’ balances and determining if adjustments are necessary  Some districts are recording revenue for all collections and not recognizing any unearned amounts

58. Current year changes

59.  Balance Sheet Accounts—no changes  Revenue Accounts ◦ Add: ◦ Source 957, Unrealized Gains on Investments, in Fund 73 only ◦ Source 517, Federal Aid Transited Through CESAs in Fund 50 to allow for transit of Federal Farm to School Grant ◦ Source 751, ESEA Title I in Fund 27 to allow for portion of School Improvement Grant revenue used for special education costs ◦ Source 649, Full Time Open Enrollment Transfer Payments, in Fund 10 to cover excessive OE transfers out when district receives little General Aid

60.  Expenditure Accounts ◦ New Accounts:  Object 998, Unrealized Losses on Investments, Fund 73 only (used with Function 420000)  To account for the decline in market value of investments at year end  Object 981, Medicaid Transits to Others, in Fund 27 to allow for transit of Medicaid revenue by a fiscal agent to participating districts  Object 996, Trust Fund Disbursements-TSA and Other Misc Benefits, in Fund 73 to separately report these types of disbursements

61.  Expenditure Accounts (cont’d) ◦ Allow Object 310, Personal Services, with Functions 256740, 256750, 256770 and 256790 (Contracted Pupil Transportation) for contracted special education bus aides ◦ Disallow further use of Object 218, Retirement Contribution to Employee Benefit Trust, with Function 291000, Termination Benefits ◦ Allow Object 220, Social Security, with Function 292000, Other Retiree Payments, to account for retiree payments subject to social security tax

62.  Other Changes/Clarifications: ◦ Source 860—includes insurance proceeds even if loss relates to prior year ◦ Source 780—clarify that Medicaid reimbursements for current year are recorded in Fund 27; receipts for prior year settlements are coded to Fund 10 ◦ Source 699—excludes receipts for Project Lead the Way ◦ Source 291—includes payments for Project Lead the Way ◦ Object 971—includes refunds of Medicaid as a result of a prior year settlement (Fund 10)

63.  Special Education ◦ Account title Changes:  Function 256250 District Operated Specialized Transportation  Function 256750 Contracted Specialized Transportation  Only students with an IEP requiring a special modification of transportation arrangements can be coded to Fund 27 with these 2 accounts

64.  http://sfs.dpi.wi.gov/sfs_wufar http://sfs.dpi.wi.gov/sfs_wufar  Latest WUFAR document  Accounting Issues and coding examples  Allowable account classifications by fund  Summary of changes per revision

65. Update

66.  2 types of Findings Identified: ◦ Findings relating to the financial statements which are required to be reported in accordance with Government Auditing Standards ◦ Findings and questioned costs for federal awards

67. OMB A_133 Subpart C Auditees.315 (c) Corrective action plan. At the completion of the audit, the auditee shall prepare a corrective action plan to address each audit finding included in the current year auditor's reports. The corrective action plan shall provide the name(s) of the contact person(s) responsible for corrective action, the corrective action planned, and the anticipated completion date. If the auditee does not agree with the audit findings or believes corrective action is not required, then the corrective action plan shall include an explanation and specific reasons.

68.  As part of our subrecipient monitoring responsibilities the DPI reviews and assesses the findings and corrective action plans for any findings identified in the Single Audit  The State of WI Legislative Audit Bureau reviews the work performed by DPI including our evaluation of the findings and management’s response to the findings  The LAB has expressed concern over the ‘General Findings’ which are included in many Single Audit reports

69.  Lack of Segregation of Duties  There is no district staff with requisite qualifications to draft the financial statements, including GASB 34 conversion entries and footnotes  There is no district staff with requisite qualifications to draft the Schedules of Federal and State financial assistance  Sometimes these findings are reported as both financial statement and federal award findings

70.  Requested more detailed corrective action plans  LAB is allowing us to evaluate each finding using a risk-based approach  Requests for more information will only be made when existing conditions suggest significant deviations from acceptable practices

71.  Sufficient detail for corrective action plans will be required in order for DPI to assess management’s plans to reduce the risks associated with the findings ◦ DPI will:  Review the findings  Evaluate the management response including planned corrective action  Request more information regarding the condition itself if not sufficiently detailed  Ask for a clear and concise plan of action to reduce the risk associated with the reported findings  Prepare a written management decision

72.  Financial Statement Findings as well as Federal Findings should be developed within this same framework  Be sure to include sufficient detail so that we may assess whether or not the reported finding has a more than insignificant potential impact on programs that DPI administers  Include management’s plans to mitigate risks inherent with the reported condition

73.  DHS requires copies of audited financial statements if district has any Type A programs funded through DHS (including Medicaid)  DHSAuditors@Wisconsin.gov DHSAuditors@Wisconsin.gov  DHS Auditors  1 West Wilson Street  PO Box 7850  Madison, WI 53707-7850

74. Debt issues

75. 2013 Act 20 modified state law with regard to the Energy Efficiency (EE) Exemption to the Revenue Limit:  Permits districts to use a State Trust Fund Loan (in addition to notes/bonds) to borrow for a project  For districts that utilize the EE Exemption to borrow funds for an eligible project: 1. Debt service payment for Line 10C of revenue limit worksheet= CY payment 2. If district’s utility costs are measurably reduced as result of the project, board must use the savings to retire the bond, note or State Trust Fund Loan. 75

76. Putting the law change into practice  This provision first applies to an EE resolution passed by a school board on or after July 2, 2013 (e.g., for the 2013-14 school year).  2013-14 is the first year in which a review of measurable savings could be conducted  2014-15 is the first year in which a school board could use the savings to retire the debt (e.g., pay down “extra” – in the amount of the measured savings – on the outstanding debt). 76

77. There is no “grandfather” clause …  If a board claimed the EE exemption in 2013-14, it must review 2013-14 for measurable cost savings and apply measured savings towards the 2014-15 debt service payment  This provision applies REGARDLESS of when a district started a project, however …  The review first begins in 2013-14, therefore, districts do not have to look back prior to 2013- 14 to identify measurable savings to pay down the debt. 77

78. Cost savings review must be performed annually (e.g., just like the resolution to claim the exemption):  Can a district increase it’s EE exemption to levy for the amount it must pay down from review of prior year’s savings?  Must a district reduce it’s EE exemption by the amount it must pay down from review of prior year’s savings?  Districts that are already mid-project, or considering a multi-year project must think through the financial implications of this law change. 78 NO NO

79. DPI is working to provide more detailed guidance for districts WATCH FOR UPDATES:  ListServ (SFS Bulletin)  The EE Exemption website: http://sfs.dpi.wi.gov/sfs_enrgyrevlim http://sfs.dpi.wi.gov/sfs_enrgyrevlim  Admin. Rule PI-15 will be updated 79

80. Financial Presentation

81.  CESAs cost of operations are primarily funded by ◦ Charges to school districts and others for services provided ◦ State and federal grants for specific programs/projects  The Agency’s operation is considered to be a business-type activity for the purpose of financial statement presentation

82.  GASB Statement # 34 ◦ Reporting by Special-Purpose Governments Engaged Only in Business-type Activities  Governments engaged only in business-type activities should present only the financial statements required for enterprise funds  Basic Financial Statements and RSI consist of  MD & A  Enterprise fund financial statements consisting of  Statement of Net Position  Statement of Revenues, Expenses, and Changes in Net Position  Statement of Cash Flows  Notes to the financial statements  RSI if applicable

83.  CESA annual report required by Wisconsin Statute 116.08  Financial Statements and Supplementary Information with Independent Auditors’ Report

84.  Financial Statements and Supplementary Information  Requiring Supplementary Schedules in the supplementary information  Revised Annual Report  Requiring additional fund information  Reconciliation of funds to the financial statements

85.  Schedule of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds - Budgetary Basis  Schedule of Revenues, Expenses, and Changes in Net Position Internal Service Funds - Budgetary Basis

86. Note Disclosures

87.  DPI collects audit reports from subrecipients and other entities that are required to have audits including the following: ◦ Wisconsin Public School Districts ◦ Cooperative Educational Service Agencies (CESAs) ◦ Library Systems ◦ 2R Charter Schools ◦ Non-profits, counties, and technical colleges which have received funding from DPI

88.  Governmental Accounting Standards Board Statement 38, Certain Financial Statement Note Disclosures, modified note disclosure requirements for debt and lease obligations, short-term debt, interfund balances and transfers, and the summary of significant accounting policies. The interfund balances note disclosure should include the purpose for interfund balances.  Comments: The note disclosures included in the basic financial statements for the School District did not include the transfer note disclosure or the purpose for interfund balances.

89.  GASB Statement # 38 Certain Financial Statement Note Disclosures ◦ Disaggregation of Receivable & Payable Balances  Governments should provide details in the notes to the financial statements when significant components have been obscured by aggregation  Significant receivable balances not expected to be collected within one year of the date of the financial statements should be disclosed

90.  GASB Statement # 38 Certain Financial Statement Note Disclosures ◦ Debt and Lease Obligations  Principal and interest requirements to maturity presented separately for each of the five subsequent fiscal years and in five-year increments thereafter  Future minimum payments for each of the five subsequent fiscal years and in five year increments thereafter for obligations under capital and non- cancelable operating leases

91.  GASB Statement # 38 Certain Financial Statement Note Disclosures ◦ Short-term Debt  Governments should provide details in the notes to the financial statements about short-term debt activity during the year  Required even if no short-term debt is outstanding at year- end  Details should include:  A schedule of changes in short-term debt, disclosing beginning and end-of-year balances, increases, and decreases  The purpose for which the short-term debt was issued

92.  GASB Statement # 38 Certain Financial Statement Note Disclosures ◦ Interfund Balances and Transfers  Governments should disclose in the notes to the financial statements the following details about interfund balances reported in the fund statements  Amounts due from other funds by individual major fund, nonmajor governmental funds in the aggregate, nonmajor enterprise funds in the aggregate, internal service funds in the aggregate and fiduciary fund type  The purpose for interfund balances  Interfund balances that are not expected to be repaid within one year from the date of the financial statements

93.  GASB Statement # 38 Certain Financial Statement Note Disclosures ◦ Interfund Balances and Transfers  Governments should disclose in the notes to the financial statements the following details about interfund transfers reported in the fund financial statements  Amounts transferred from other funds by individual major fund, nonmajor governmental funds in the aggregate, nonmajor enterprise funds in the aggregate, internal service funds in the aggregate, and fiduciary fund type  A general description of the principal purposes of the government’s interfund transfers

94.  GASB Statement # 38 Certain Financial Statement Note Disclosures ◦ Summary of Significant Accounting Policies  Governments should disclose in their summary of significant accounting policies the length of time used to define available for purposes of revenue recognition in the governmental fund financial statements

95.  GASB Statement # 34 Basic Financial Statements and Management’s Discussion and Analysis – State and Local Governments ◦ Information presented about major classes of capital assets should include:  Beginning and end of year balances with accumulated depreciation presented separately from historical cost  Capital acquisitions  Sales or other dispositions  Current-period depreciation expense with disclosure of the amounts charged to each of the functions in the statement of activities

96.  GASB Statement # 34 Basic Financial Statements and Management’s Discussion and Analysis – State and Local Governments ◦ Information presented about long-term liabilities should include both long-term debt and long-term liabilities (such as compensated absence) ◦ Information presented about long-term liabilities should include:  Beginning and end of year balances  Increases and decreases (presented separately)  The portions of each item that are due within one year of the statement date

97. 13-14 Questions

98.  Question ◦ Insurance proceeds for a property loss have been received after year-end. ◦ The loss occurred in the period under audit (before year-end). ◦ What period is the insurance recovery for this loss recorded?

99.  Answer ◦ GASB Statement # 42, Paragraph 21  In governmental fund financial statements, restoration or replacement of an impaired capital asset should be reported as a separate transaction from the associated insurance recovery, which is reported as an other financing source for extraordinary item  Insurance recoveries should be recognized only when realized or realizable

100.  Examples ◦ An insurance recovery would be realizable if an insurer has admitted or acknowledged coverage ◦ The insurance recovery would generally not be realizable if an insurer has denied coverage

101.  Question ◦ The district has incurred expenditures for a referendum approved project ◦ The district has not issued debt to cover these expenditures ◦ Can the general fund advance monies to the capital projects fund (Fund 49) to cover these expenditures?

102.  Answer ◦ Wisconsin Statute 67.10 (3)  All borrowed money shall be paid into the treasury of the municipality borrowing it, be entered in an account separate and distinct from all other funds, disbursements charged thereto shall be for the purpose for which it was borrowed and for no other purpose, but including the reimbursement of a temporary advance from other funds of the municipality if such advance or loan has been made in anticipation of the borrowed money and for the same purpose

103. Questions?

104.  Gene Fornecker, CPA ◦ 608/267-7882 ◦ eugene.fornecker@dpi.wi.gov eugene.fornecker@dpi.wi.gov  Brian Kahl, CPA ◦ 608/266-3862 ◦ brian.kahl@dpi.wi.gov brian.kahl@dpi.wi.gov  Michele Gundrum, CGFM, CPA ◦ 608/267-9218 ◦ michele.gundrum@dpi.wi.gov michele.gundrum@dpi.wi.gov