1. ANNUAL FINANCIAL REPORT UPDATES Presented by: LouAnn Caldarella (lcaldare@state.pa.us) ( 717) 783-9003lcaldare@state.pa.us Collette Kelly (ckelly1@state.pa.us) (717) 783-9102ckelly1@state.pa.us School Finance Division LECS Comptroller’s Office

2. INTRODUCTION LATEST UPDATES TO AFR (PDE 2057 ) GOALS FOR AFR 2006 AREAS OF IMPROVEMENT

3. 2004-2005 AFR OVERWHELMINGLY SUCCESSFUL YEAR FOR TIMELY AFR COLLECTION $300 A DAY PENALTY WAS IMPLEMENTED THIS YEAR AND ASSESSED !

4. GOALS FOR AFR 2006 ACHIEVE MORE CONSISTENCY ON AFR STATEMENTS AND SCHEDULES QUALITY ASSURANCE

5. CHANGES TO THE CHART OF ACCOUNTS FOR AFR 2006 LIST CAN BE FOUND ON SCHOOL FINANCE WEBSITE: www.pde.state.pa.us/school_acct ACCOUNTING INFORMATION / MANUAL OF ACCOUNTING /CHART OF ACCOUNTS/SUMMARY OF CHANGES

6. NEW VALIDATIONS FOR AFR 2006 CAPITAL RESERVE: DELETED OPTION TO ENTER 9110 AND 9120 OUTSTANDING LONG TERM DEBT- CHECK PRIOR YEAR END BALANCE TO CURRENT YEAR BEGINNING BALANCE RICE SCHEDULE - ALLOWABLE ENTRIES FUNCTION 2300-WILL HAVE EXPLANATION LOADED DUAL CAPACITY OF BOARD SECRETARY/BUSINESS MANAGER FUNCTION 2500- AUDIT COST INTERFUND TRANSFERS – TRANSFER OUT MUST EQUAL TRANSFER IN. THIS MUST ALSO TAKE INTO ACCOUNT TRANSFERS TO AND FROM PROPRIETARY FUNDS

7. MORE DETAILED AFR INSTRUCTIONS DETAILED INSTRUCTIONS WILL BE AVAILABLE TO DOWNLOAD. FOR MORE INFORMATION REFER TO THE AFR USER MANUAL 2005-2006.

8. TARGETED AREAS OF IMPROVEMENT STATEMENT OF INDEBTEDNESS (SOIN) SUPPLEMENTAL EXPENDITURE SCHEDULE REVENUES, EXPENSES AND CHANGES IN FUND BLANCES (REG) RESTRICTED INDIRECT COST SCHEDULE

9. SOIN PAYMENTS ON SOIN MUST BE REFLECTED ON THE FINANCIAL STATEMENTS 5110 (DEBT SERVICE) MUST MATCH AMOUNT ON REVENUE EXPENDITURES AND CHANGES IN FUND BALANCE (REG)

10. SOIN (CONT ) BE ATTENTIVE TO THE LINE THE ENTRY IS MADE ON.

11. SUPPLEMENTAL EXPENDITURES NON PUBLIC TRANSPORTATION VALIDATION SHOULD NOT BE JUSTIFIED AS ”NOT PROVIDED” IF SUBSIDIES ARE ISSUED DO NOT POST $1 AS AN ENTRY SIMPLY TO AVOID GETTING A VALIDATION INFORMATION REPORTED ON SCHEDULE IS USED ON FEDERAL REPORT THAT DETERMINES TITLE I ENTITLEMENTS

12. REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE INTERFUND TRANSFERS – Transfers from one fund must be accounted for in the receiving fund. This includes transfers to your Proprietary funds.

13. RESTRICTED INDIRECT COST SCHEDULE IF RECORDING EXP’S 3100-500 AND 3100-600 IN PROPRIETARY FUND/REVENUES,EXP’S AND CHANGES IN FUND NET ASSETS (REP) ALSO RECORD TO RICE SCHEDULE /CAFETERIA FUND EXP’S

14. REVISED AFR’S AFR REVISION FORM ON WEBSITE TO SUBMIT WITH REVISED FILE TO INDICATE WHAT AREA OF AFR IS BEING REVISED. WHEN SUBMITTING A REVISION REMEMBER THAT WHEN DATA IS LOADED FOR TUITION RATE, AIE,ETC, THE CALCULATION WILL BE BASED ON THE LATEST DATA PROVIDED.

15. USEFUL RESOURCES SCHOOL FINANCE WEBSITE www.pde.state.pa.us/school_acct www.pde.state.pa.us/school_acct AFR 2006 USER MANUAL MANUAL OF ACCOUNTING CHART OF ACCOUNTS