1. SUMMER AT A GLANCE May 22 nd, 2014 Erin Fath, Assistant Director School Financial Services Team, DPI

2. Why “Summer at a Glance”? To help you prepare for next few months – as it relates to the current and the upcoming fiscal years To answer the basic questions that we receive throughout the year To explain how the data that we collect from school districts translates into: Payment of State Aids (General Aid, Categorical Aids) Calculation of Revenue Limit 2

3. How We Can Help You In addition to being available at the office or at conferences and workshop trainings, the SFS Team provides information via: Web pages, webcasts, and tutorials Late Breaking News (from SFS Home Page): http://sfs.dpi.wi.gov/sfs_late_breaking Prior presentations: http://sfs.dpi.wi.gov/sfs_presentationshttp://sfs.dpi.wi.gov/sfs_presentations Newsletters and listserv notices [SFS Bulletins] Repository of prior SFS Bulletins and Newsletters: http://sfs.dpi.wi.gov/sfs_mailings http://sfs.dpi.wi.gov/sfs_listservsubscribe http://sfs.dpi.wi.gov/sfs_listservsubscribe If you are not already subscribed, you can do so at the following website: http://sfs.dpi.wi.gov/sfs_listservsubscribe http://sfs.dpi.wi.gov/sfs_listservsubscribe 3

4. What You Should Do…Today! Bookmark this website http://sfs.dpi.wi.gov/ Make sure you are identified appropriately in the PI-1500 District Contacts Report. NOTE: the SFS Team is currently redesigning the PI-1500 Report – easier to navigate, make changes … watch the SFS Bulletin! Please ensure updates are made to reflect changes in staff or responsibilities. 4

5. What We Will Cover Today … Processes you need to be aware of for the next few months: The Current Fiscal Year (2013-14) 2013-14 Reports that will open / close this summer Ongoing reports / issues Preparing for Audit (DPI presentation at 2:15 today …) Review current year budget amendment process Next Fiscal Year (2014-15) Budget for 2014-15 (estimating summer and September 2014 enrollments, revenue limits, district staff budgets) Transfer of Service – reporting for 2013-14, impact 2014-15 5

6. Current Fiscal Year (2013-14)

7. DPI Reports: Collecting Data for the 2013-14 School Year 7 REPORTOPEN DATEDUE DATE PI-1547: Pupil Transportation – regular school year (SAFR) 5/12/146/27/14 PI-1589: Foster / Group Home Report – Part 1) Letter to all districts (paper); Part 2) Confirmation (after 6/27/14; due 8/29/14) 5/30/146/27/14 PI-1505: Calendar Report (SAFR)5/23/147/25/14 PI-1505: Census Report (SAFR)7/01/148/22/14 PI-5000: Transfer of Service (access from SAFR)2/24/148/29/14 PI-1505-AC: District’s Preliminary Annual Report (SAFR) 7/14/148/29/14

8. DPI Reports: Collecting Data for the 2013-14 School Year 8 REPORTOPEN DATEDUE DATE PI-1506-AC: Auditor’s Annual Report (SAFR)7/14/149/12/14 PI-1505: District’s Full Annual Report (SAFR)7/14/149/19/14 PI-1505-SE: Special Education Annual Report (access from SAFR) 7/14/149/19/14 PI-1524: State Tuition Claim (stand alone report) [http://sfs.dpi.wi.gov/sfs_tuit_st ]http://sfs.dpi.wi.gov/sfs_tuit_st 7/14/149/26/14 PI-1804: Summer School Pupil Count Report (SAFR) 7/01/1410/01/14 PI-1547-SS: Summer School Transportation Report (SAFR) 7/01/1410/03/14

9. Let's review the reports...

10. PI-1547/PI-1547-SS: Transportation Reports Used to collect data on the district’s “actual ridership" PI-1547: for transportation during the regular 2013-14 school year [open now - due 6/27/14] Remember, summer transportation is reported separately, and... Summer School Starts the School Year! PI-1547-SS: for transportation during summer Summer 2013 (2013-14 school year) - finished Summer 2014 (2014-15 school year) - opens 7/1/14 - due 10/3/14 Transportation Aid Contact: Bruce Anderson (bruce.anderson@dpi.wi.us) 10

11. PI-1547/PI-1547-SS: Transportation Reports Data is used to calculate the district’s regular Transportation Categorical Aid. Aid is calculated based on the number of pupils riding in specific mileage categories [see Appendix] specific mileage categories Initial Aid Payment: January 2015, based on 2013-14 data If remaining funds: paid in June 2015 NOT used to calculate High Cost Transportation Aid (that aid is based on actual expenditures) Districts will need to document the procedures used to determine actual ridership. Auditors will review this documentation at the year end audit. 11

12. PI-1547/PI-1547-SS: Transportation Reports VERY IMPORTANT! The PI-1547 Report is NOT the place to include special education students being transported on special education-only routes. Districts receive aid for special education transportation based on eligible expenses that are included in the calculation of State Special Education Categorical Aid. Except for VERY LIMITED EXCEPTIONS, if regular education pupils ride special education-only routes, a district's Special Education Categorical Aid could be impacted. PLEASE consult with the SFS Team or if you have any questions pertaining to Special Education transportation expenditures / coding issues. Special Education Categorical Aid (including Spec. Ed. Transportation) contact: Dan Bush (daniel.bush@dpi.wi.us) 12

13. PI-1505: Calendar Report - Days & Hours of Instruction YES – the 180 day requirement was eliminated under 2013 Act 257, effective for 2013-14 school year, but … Districts are still required to meet the minimum hours of instruction, per ss. 121.02(1)(f) [School district standards] DPI will continue to require districts to complete the Calendar Report for both hours and days of instruction The required minimum hours of instruction did not change: 13 Grade LevelMinimum Hours Kindergarten (4k & 5k)*437 hours Grades 1 through 61,050 hours Grades 7 through 121,137 hours *4k – may use up to 87.5 hours for “outreach” (0.50FTE), or may add 87.5 hours of outreach (524.5 hours – 0.60 FTE)

14. PI-1505: Calendar Report - Days & Hours of Instruction The definition of “days of instruction” did not change … s. 115.01(10)(a) – School days are days on which school is actually taught and the following days on which school is not taught. Days on which: School is closed by order of the school district administrator because of inclement weather and days on which parent teacher conferences are held. School is, as defined in s. 250.01(5) closed by order of a local health officer School is closed by order of the school district administrator because of a threat to the health or safety of pupils or school personnel, but not including inclement weather days, unless the school board determines that the days will not count as school days. WORKSHEET TO COMPUTE DAYS/HOURS: http://sfs.dpi.wi.gov/sfs_days_hours http://sfs.dpi.wi.gov/sfs_days_hours 14

15. Group / Foster Care Report Used to count pupils in a foster placement who were NOT captured in the Sept/Jan pupil counts FTE based on number of days enrolled in district FTE is for General Aid purposes (not Revenue Limit) Only for pupils in foster placement that is on taxable property (excludes pupils who could be claimed for State Tuition) Report process begins with letter from SFS Team to districts – will be sent May 30 th [due 6/27/14] Districts are also required to follow up: If another district claims a pupil on this report, we ask the district from which the pupil came to confirm that pupil’s exit from the district. 15

16. PI-1505: Census Report Collects data on the number of all children ages 4 to 20 residing in the district, as of June 30, 2014 [opens 7/1/14 - due 8/22/14) Data used to calculate the district's School Library Aid, which is funded with Common School Funds (CSF): Net Interest earnings from CSF are distributed annually Per head allocation: total funding / statewide census Aid Estimate provided in January, payment in April Aid must used for purchase of School Library materials (including computer hardware and instructional media) Allocation is to be expended by June 30th of the year in which the aid is received 16

17. PI-1505: Census Report Two methods to identify children: Physical Count Mathematical calculation to estimate NOTE: the census count excludes children cared for at a charitable or penal institution in the state Example: 17 Residents Ages 4-20Headcount Enrolled in public schools (3rd Friday in September pupil count) 1,604 Enrolled in private schools86 Home-schooled54 Estimate of those not accounted for above (not enrolled in any school) 326 TOTAL CENSUS2,070

18. PI-1505-AC: District Aid Certification Report ("Preliminary Annual") Report is used to collect critical financial data from the district’s ledger for the just completed fiscal year. Why "preliminary"? Statute require DPI to collect annual expenditure/revenue data by Sept. 1st - districts may not be in position to submit a "full annual" report at that time. District data entered on the PI 1505AC is verified by the auditor via the PI 1506AC (report completed by the auditor). 2013-14 Report opens 7/14/14 - due on 8/29/14 18

19. PI-1506-AC: Auditor's Aid Certification Report Report is submitted by the district's Auditor and is used to collect the critical financial data from the district’s ledger for the just completed fiscal year. DISTRICT'S PI-1505-AC MUST MATCH THE PI-1506- AC - so districts may have to make adjustments as the auditor's report is finalized. Data from the PI 1506AC is the basis for calculating the Shared Costs that will be used by DPI to calculate the Oct 15 th Certification of General Aid. 2013-14 Report opens 7/14/14 - due on 9/12/14 19

20. PI-1505: Full Annual Report is used to collect the district’s FINAL revenues, expenditures, assets, liabilities and equity for all funds for the just completed fiscal year 2013-14 Report opens 7/14/14 - due on 9/19/14 This report will be audited by SFS Team staff during the 2014-15 school year Data used to calculate the district’s final aid eligibility [calculated in May 2015] Per s.121.54(4)(b) - any differences between this final aid eligibility and the Oct. 15th certification of aid become "prior year adjustments" - applied the following year's General Aid Payment 20

21. PI-1505-SE: Special Education Annual Report Special Education Report is used to collect the district’s Special Education (Fund 27) expenditures for the just completed fiscal year. Data used to calculate the district’s Special Education Categorical Aid (reimbursement of prior year expenditures). 2013-14 Report opens 7/14/14 - due 9/19/14 Contact: Dan Bush (daniel.bush@dpi.wi.us) 21

22. PI-1505-SE: Special Education Annual Report 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: High Cost Special Education Aid http://sped.dpi.wi.gov/sped_highcost Supplemental Special Education Aid http://sfs.dpi.wi.gov/sfs_supspedaid1 Contact: Dan Bush / DPI Federal IDEA Grant Team 22

23. PI-1524: State Tuition Claim 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. 2013-14 Report opens 7/14/2014 - due 9/26/14\ Not all districts make claims Report is NOT within the SAFR – more information found at: http://sfs.dpi.wi.gov/sfs_tuit_st Contact: Dan Bush (daniel.bush@dpi.wi.gov) 23

24. PI-1804: Summer Pupil Count Used to collect data on countable summer school minutes, which are converted to FTE data for the summer term. Summer school starts the school year, so … 2014-15 Summer School Report for summer 2014 2014 Summer FTE data will used in the calculation of: 2014-15 Revenue Limit* 2015-16 Equalization/General Aid. 2014-15 [Summer 2014] Report opens 7/1/2014 - due October 1, 2014 *For Revenue Limit: summer school is counted at 40% 24

25. PI-1804: Summer Pupil Count NOTE ON ONLINE SUMMER COURSES AS AFFECTED BY 2013 ACT 257 The SFS Team has recently released guidance to districts regarding the counting of summer school minutes for on-line courses offered by the district during summer school: 5/12/2014 Letter to Districts - "Summer School On-line Courses For more information, see: http://sfs.dpi.wi.gov/sfs_summ_sch Contact: Carey Bradley (carey.bradley@dpi.wi.gov) This topic will be addressed at the DPI session "Recent Legislation" on Friday, May 23rd, at 8:55 a.m. 25

26. PI-1804: Summer Pupil Count NOTE ON SUMMER SCHOOL FEES: Please be aware of the rules surrounding summer school fees and eligibility to count summer school minutes: Only reasonable fees for individual use items and consumable materials which do not exceed the cost of the items are permitted: Violating this rule can result in loss of summer school minutes... and thus FTE for membership purposes! For more information, see: http://sfs.dpi.wi.gov/sfs_summ_sch Contact: Carey Bradley (carey.bradley@dpi.wi.gov) 26

27. Other on-going reports and issues...

28. Debt Schedule Submit any changes to debt schedule within 10 days of the change (in the school finance reporting portal - “SAFR”) New debt issued OR changes to existing debt schedules. Keeping SAFR updated will ensure consistency with the debt schedule data in the district’s Annual Report Contact is Gene Fornecker: eugene.fornecker@dpi.wi.goveugene.fornecker@dpi.wi.gov For more information on debt, including reporting instructions, please refer to: http://sfs.dpi.wi.gov/sfs_debtrpthttp://sfs.dpi.wi.gov/sfs_debtrpt 28

29. Open Enrollment Verify open enrollment students in OPAL to ensure accurate aid transfer in June. Districts should review the status of both OE-In and OE- Out students Contact the other district as soon as possible to resolve issues in timely manner It may be necessary to make changes to the September & / or January pupil count reports as a result of OE adjustments. NOTE: Changes to the September 2013 pupil count report could have an impact on 2013-14 Revenue Limit calculation. 29

30. Pupil Count Changes/Membership Audit 2013-14 Membership Audits – received May 1st 2013-14 PI-1563 Pupil Count Report – closed Limited window of time to make amendments if needed DPI runs final 2013-14 Revenue Limit calculations by May 30 th We will close the report mid-June to run the July 1 st estimated of 2014-15 General Aid Changes needed? Contact the SFS Team to open the PI- 1563 Pupil Count Report: Erin Fath (erin.fath@dpi.wi.gov)erin.fath@dpi.wi.gov 30

31. Annual Audit (July/August) – to prepare for the audit, districts should request a list of all items the auditor will need for the audit: The auditors will examine district records to verify that: 1. The district financial statements represent the financial activity for the year ended June 30 th 2. They are presented in accordance with Generally Accepted Accounting Principles (GAAP) and in compliance with state and federal requirements. 31 Prepare for Year End Audit

32. Audit Preparation Request a list of all items needed for the audit - ask for "Client Prepared List" - items the auditor will need to perform audit. Post all year-end items. Reconcile all balance sheet accounts. Have all manual journal entries available for review. Print year-end general ledger, revenue, and expenditures reports. This afternoon at 2:15 - DPI presentation "What to Expect in the Upcoming Fiscal Audit” (Brian Kahl) 32

33. 2013-14 YEAR BUDGET CHANGES 33

34. CURRENT YEAR BUDGET CHANGES As the year progresses, districts may need to change budget appropriations and purposes: State law requires that 2/3 board vote is required to change the budget [ss. 65.90(5)] Also requires that any changes made shall be published in a Class 1 notice within 10 days after the change is made. 34

35. CURRENT YEAR BUDGET CHANGES Do the two-thirds vote and publication requirements apply to every change to a district’s budget? Statute [ss. 65.90(5)]: “ … the amounts of the various appropriations and the purposes for such appropriations state in a budget …” Appropriation = $ amount Purpose = function (in WUFAR) – think of as a major line item (not summary line) in the district’s budget Note: Districts are advised to use a budget format which shows amounts appropriated for expenditures according to [WUFAR] functions, as function equates to purpose. 35

36. CURRENT YEAR BUDGET CHANGES Pursuant to input from the WASB, school district officials and legal counsel, the DPI recommends that the two-thirds vote and publication are required if: 1. Any change in $ amount budgeted for a specific purpose, and / or 2. Any change to a purpose for which funds were appropriated Compared to what was presented in the line items of the district’s adopted budget. Changes in subordinate line items from which the adopted budget evolved (but not detailed in the adopted budget) do not require the two-thirds vote & publication. 36

37. POP-QUIZ!! When can the board make an official change to the budget? Anytime as necessary When must a change pass by 2/3 vote? Change to appropriation Change to purpose (i.e., line item in budget / function) When should a change be published? Within 10 days of the board action EXTRA CREDIT: When should a budget change be recorded in your DPI Budget Report? And WHY? As soon as practical, because that data is used for the July 1 st Estimate of General Aid! 37

38. Upcoming Fiscal Year (2014-15)

39. School boards are required to approve a “proposed” budget for presentation at the budget hearing. The Board shall adopt an “original” budget after the hearing but no later than the meeting in which the levy is set (levy must be set by November 1 st ). Review and prepare for the annual meeting as well as meeting notice requirements. Remember, DPI provides samples that the district can utilize for this process which are available at http://sfs.dpi.wi.gov/sfs_budhear http://sfs.dpi.wi.gov/sfs_budhear (Budget Hearing & Adoption Workbook) 39 2014-15 Budget Preparation

40. Spending Authority Prior to Passage of Original Budget s. 120.13(33) provides spending authority to the school board to meet immediate expenses of operating & maintaining the public instruction in the district during the period between July 1 st and the final adoption of a budget by the school board after the budget hearing. 40

41. Original Budget Adoption The adopted budget identifies the anticipated revenue and proposed expenditures which the board has agreed to at the time of passage. Budget detail is based upon the Wisconsin Uniform Financial Accounting Requirements (WUFAR) hierarchy of accounts [purpose = function] DPI provides a recommended budget publication, adoption and change format, available at: http://sfs.dpi.wi.gov/sfs_budhear (Budget Hearing & Adoption Workbook) http://sfs.dpi.wi.gov/sfs_budhear See Appendix for more detail on Statutory Requirements and Budget & Hearing resources (DPI) 41

42. Gather preliminary budget data and compile your initial full budget: Staff should be completing individual / departmental budgets for the next school year (depends on district’s schedule) Open enrollment will need to be estimated since all applications are not in / acted on at this time (deadline is April 30 th ; also, year-round exceptions). 2013-14 fulltime OE Payment: $6,485 2014-15 fulltime OE Payment: $6,635 The Pre-Populated 2014-15 Revenue Limit Worksheet is available at: http://sfs.dpi.wi.gov/sfs_revlimworksheethttp://sfs.dpi.wi.gov/sfs_revlimworksheet 42 2014-15 Budget Preparation

43. 2014-15 Pre-Populated Revenue Limit Worksheet At this time, the worksheet includes: Base revenues (from 2013-14 worksheet) September and Summer FTE for 2011, 2012 & 2013 Per Pupil Adjustment: $75 (Line 4A) Low Revenue Ceiling threshold: $9,100 (Line 4B) Eligible carryover authority from 2013-14, if applicable (Line 8A) High Poverty Aid, if applicable (Line 12B) 43 2014-15 Budget Preparation

44. 2014-15 Pre-Populated Revenue Limit Worksheet At this time, districts must estimate: September and Summer FTE for 2014 Exemptions to revenue limit: Recurring – TOS, Transfer of Territory, Federal Impact Aid loss, Recurring Referendum (Lines 8B-8D) Non-Recurring – Non-Recurring Referendum, Energy Efficiency, Refunding/Rescinded Taxes, Uncounted Prior-Year Open Enrollment Pupils (Lines 10A-10E) NOTE: Declining Enrollment auto-calculates upon entry of 2014 FTE data Equalized Property Values (Lines 17A & B) – it is not necessary at this time for purposes of estimating revenue (Line 11) These values will come to DPI on October 1 st ; for now, districts can use the values from 2013-14 worksheet 44 2014-15 Budget Preparation

45. Revenue Limit Worksheet 45

46. Transfer of Service Exemption

47. Transfer of Service What is Transfer of Service? An exemption to the revenue limit (normally recurring) Based on WI Stat. 121.91(4)(a), TOS allows for an increase on the local tax levy. Transfer of Service is NOT: A payment from the Sate. A payment from another school district. 47

48. Transfer of Service The added tax authority from an approved TOS: Helps the district cover unexpected costs for incoming Spec Ed/LEP (Limited English Proficiency) transfers. Helps the district cover the cost of new operation expenses that were once provided by another municipality. TOS is NOT a means of increasing tax authority to cover increased costs of existing services. 48

49. Transfer of Service How do you get this Transfer of Service? Students must have come to the district with identified Special Ed or Limited English Proficiency needs. Fill out the proper on-line applications with the appropriate pupil information: NOTE: The TOS security system is based on the OPAL security model – not the same password that you use for SAFR – District Administrator has the rights to assign access within the district the TOS report. Verification may be needed. 49

50. Transfer of Service How do you get this Transfer of Service? After all required verifications are obtained, complete the Part C (Summary). NOTE: This is the formal request for a Transfer of Service - Districts MUST complete Part C Reporting is accomplished via the on-line TOS Report - accessible from within SAFR, or at TOS web page. TOS Report is currently open - due 8/29/14 50

51. Transfer of Service Where do you submit the needed information and how do you know what your Transfer of Service exemption is? From the SFS Team Homepage, navigate to the "Transfer of Service" link, or... http://sfs.dpi.wi.gov/transfer-service SFS Team Contact: Bruce Anderson (Bruce.Anderson@dpi.wi.gov)Bruce.Anderson@dpi.wi.gov 51

52. The net TOS amount will affect the 2014-15 revenue limit calculation as an exemption to the district’s limit - creates the additional tax authority Now is the time to gather TOS information: Establish contact with the person in your district who is responsible for this report You will need information related to costs associated with transfers into your district; you may be asked for information by other districts (transfers out) 52 Transfer of Service Exemption

53. THANK YOU FOR THIS OPPOTURNITY TO PRESENT Questions??? THANK YOU FOR THIS OPPOTURNITY TO PRESENT!! Questions??? Bruce Anderson, Consultant608-267-9707 Carey Bradley, Consultant608-267-3752 Dan Bush, Consultant608-267-9212 Karen Kucharz, Consultant608-266-3464 Gene Fornecker, Auditor608-267-7882 Michele Gundrum, Auditor608-267-9218 Brian Kahl, Auditor608-266-3862 Erin Fath, Asst. Dir.608-267-9209 Bob Soldner, Director608-266-6968

54. APPENDIX 54

55. Transportation mileage rates 55 Distance in MilesRegular YearSummer School Less Than 2 Miles (hazardous area) $15/pupil-- Over 2-5 miles$35/pupil$4/pupil Over 5 up to 8$55/pupil$6/pupil Over 8 up to 12$110/pupil$6/pupil Over 12$275/pupil*$6/pupil RETURN

56. Original Budget Adoption 65.90(1) requires districts to formulate a budget and hold public hearings 65.90(2) identifies what needs to be included 65.90(3) requires districts to publish a budget summary 65.90(3)(b) identifies what needs to be included in the “proposed” budget summary 56 The published budget summary is a “proposed” budget

57. Original Budget Adoption 65.90(4) identifies the timelines for holding the public hearing on the “proposed” budget 120.12(3)(a) and (c) requires the board to set a levy on or before Nov 1 st. The budget adopted after the public hearing but on or before November 1st is considered the first “official” budget 65.90(5) clarifies that 2/3 board vote is required to change the budget 57

58. BUDGET HEARING & ADOPTION 58 RESOURCES ON THE SFS WEB PAGES Budget Hearing and Adoption Requirements: http://sfs.dpi.wi.gov/sfs_6590req Budget Hearing Timelines http://sfs.dpi.wi.gov/sfs_6590time General Information: Budget Hearing & Adoption http://sfs.dpi.wi.gov/sfs_budhear *Links to the Budget Adoption Workbooks

59. Who We Are – The SFS Team 59 Division for Finance and Management Brian Pahnke Assistant Superintendent School Financial Services Robert Soldner, Director Education Administrative Director Bill Evans IS Business Automation Specialist Victoria Chung Accountant Senior Gene Fornecker School Finance Auditor Bruce Anderson School Administration Consultant Dan Parizo IS Business Automation Specialist Vacant IS Business Automation Specialist Brian Kahl School Finance Auditor Michele Gundrum School Finance Auditor Karen Kucharz Robbe School Administration Consultant School Financial Services Erin Fath, Assistant Director Education Administrative Director Carey Bradley School Administration Consultant Dan Bush School Administration Consultant