2. Fiscal Year at a Glance WASBO New School Administrator & Business Support Staff Workshop August 16, 2007 Lori Ames, Consultant-DPI Brad Adams, Consultant-DPI Robert Borch, Assistant Superintendent-Elmbrook

3. Agenda  9:00 – 10:15: Introduction, Website Review  10:15 – 10:30: Break  10:30 – 12:00: DPI reporting requirements, district budgeting  12:00 – 1:00: Lunch  1:00 – 2:15: Building Trust  2:00-2:30: Break  2:30-4:00: Money Saving Tips

4. Who We Are

5. Finance Team….What We Do  Collect data reports from districts in order to distribute over $5.6 billion in State Aid and credits  Provide data to individuals, organizations, state and federal agencies  Provide consultation services as needed  Provide a website and training opportunities

6. How We Can Help You  Web page publications & tutorials  Phone calls, e-mail  Listserv notices  Conferences and workshops

7. What Should You Do…Today!  Bookmark this website http://www.dpi.wi.gov/sfs/index.html  Subscribe to our list serv http://www.dpi.wi.gov/sfs/mailings.html Click on the link to “subscribe”

8. Website Review

9. Why “Fiscal Year at a Glance?”  Answer the basic questions that we receive throughout the year  Show how data elements translate into the payment of aid  Show connections between fiscal years  Show connections between various pieces of data

10. Master “Multi-Tasker” How many years can you juggle at one time……

11. July - December What activities take place relating to the prior fiscal year (2006-07)?

12. School Calendar Report  Report used to collect data on the district’s days and hours of instruction for the just completed school year.  Data is used to verify compliance with state statutes 121.02(1)(f)1. and 121.02(1)(f)2.

13. Days of Instruction  Districts are required to schedule at least 180 school days 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, not to exceed 5 days. Days on which school is closed by order of a local health officer, as defined in s. 250.01(5).

14. Hours of Instruction  Minimum number of hours required at various levels: Kindergarten437 hours School Board operating a 4 year old kindergarten may use up to 87.5 of the scheduled hours for outreach activities. Grades 1 – 61,050 hours Grades 7 – 121,137 hours (Districts report these hours by school building on the school calendar report.)

15. Pupil Transportation Report  Report used to collect data on the district’s “actual ridership” per state statute 121.58 for the just completed school year (summer & regular school year – summer school starts the school year!).  Data is used to calculate the district’s transportation categorical aid.  Districts will need to document the procedures used to determine actual ridership. Auditors may review this documentation at the year end audit.

16. School Census Report  Report used to collect the district’s census data as of June 30 th of the just completed fiscal year.  Data is used to calculate the district’s common school fund categorical aid (library aid).

17. Census Data  State statute 120.18(1)(a) allows districts to identify census numbers by utilizing one of two established procedures: Perform an actual physical count. Perform a mathematical calculation to determine a school census number.

18. Census Data  Mathematical calculation example: (as of the prior 3 rd Friday in September) Res. school district enrollees1,604 Res. private school enrollees 86 Res. home-based private education programs enrollees 54 Res. children between the ages of 4 and 20 who are not accounted for in the counts listed above (estimate) 326 2,070

19. Common School Fund  The common school fund is one of the State Trust Funds. Managed by the Board of Commissioners of Public Lands (BCPL) Net earnings of the fund are distributed as library aid each year to public school districts for the purchase of school library materials

20. Common School Fund Aid  Districts are given an estimate of common school fund aid in January with an actual aid payment on May 1 st.  The entire allocation must be spent by June 30 th of the year in which it is received.  The Department annually verifies that the full amount of aid has been spent. District may receive an inquiry if it appears funds may go unspent.

21. Common School Fund Aid  Common School Fund Aid may be spent on: WUFAR Function 222 000 - Object Codes: Audiovisual materials 431 Library books 432 Newspapers 433 Periodicals 434 Instructional software 435 Microfilm 438 Other Media 439

22. PI 1505AC (Aid Certification)  Report used to collect critical financial data from the district’s ledger for the just completed fiscal year.  Data is used to calculate the district’s October 15 th aid certification.  District data entered on the PI 1505AC is verified by the auditor via the PI 1506AC (report completed by the auditor).

23. PI 1505 – Full Annual Report  Report used to collect the district’s final revenues, expenditures, assets, liabilities, and equity for all funds for the just completed fiscal year.  Data used to calculate the district’s final aid eligibility as per state statute 121.54(4)(b).

24. Special Education Annual Report  Report 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.

25. Audit  Annual audit of district financial records is statutorily required.  The independent auditors will verify that the financial statements present fairly the balance sheet as of June 30 th and the results of operations for the year ended June 30 th.

26. Purpose of the Audit  Maintain public confidence in the reliability of published financial data.  Assure users that the financial statements are fairly presented in accordance with Generally Accepted Accounting Principles (GAAP).  Determine compliance with state and federal requirements.

27. Phases of the Audit Process  Planning  Preliminary Fieldwork  Final Fieldwork  Communication with Management

28. Audit Preparation  Request a list of all items needed for the 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  RELAX!

29. July - December What activities take place relating to the current fiscal year (2007-08)?

30. Final Budget Development  Finalize current year expenditures and revenues Expenditures Salary/benefits – per contract/negotiations Other program/district expenditures Revenues Revenue Limit revenues Equalization Aid Tax Levies Computer Aid Categorical Aids (review prior year reports) Grants Local Revenues

31. Final Budget Development  The district’s budget is a roadmap based on the district’s best estimations.  Two major revenues remain an estimate until mid-October – when the district can calculate the revenue limit for taxing purposes: Equalization Aid Tax Levy

32. Budget Hearing & Adoption  The Budget Hearing and Adoption process is outlined in state statute 65.90.  All districts are required to have a budget hearing.  Common and Unified High School Districts are required to hold the budget hearing at the same time and place as the annual meeting.

33. Budget Hearing and Adoption  School boards are required to approve a “proposed” budget for presentation at the budget hearing.  An excel file is available to assist with the recommended format for budget presentation and publication. http://www.dpi.wi.gov/sfs/budhear.html

34. Budget Hearing and Adoption

35. Budget Publication  School Districts must publish notice of the budget hearing as well as the proposed budget summary. Common S.D. – at least 10 days prior Unified and UHS S.D. – at least 15 days prior

36. Budget Hearing Notice

37. Budget Publication Summary

38. Annual Meeting  State statute 120.08 (1) identifies the date and time of the annual meeting. Common S.D. – 4 th Monday in July – 8:00pm UHS S.D. – 3 rd Monday in July – 8:00pm Unless……

39. Annual Meeting  The electors at one annual meeting vote to hold the following annual meeting at a different date or hour or authorize the school board to establish a different date or hour.  No annual meeting may be held before May 15 th or after October 31 st.

40. Annual Meeting Notice  School district must publish a class 2 notice for the annual meeting. 1 st notice – at least 2 weeks prior to meeting 2 nd notice – not more than 8 days or less than 1 day prior to the meeting

41. Annual Meeting Notice

42. Original Budget Adoption  The school board shall adopt an “original” budget at a school board meeting after the public hearing and no later than the meeting in which the tax levy is set. November 1 st – deadline for adopting the “original” budget and setting the levy amount November 6 th – deadline for certifying the levy amount to the municipalities

43. Summer School FTE Report  Report used to collect district FTE data for the just ended summer term. (Summer school starts the school year!)  FTE data is used in the calculation of a district’s revenue limit and equalization aid.  The summer school report is one of the few reports that ask for an FTE count as opposed to a head count.

44. Summer School FTE  Summer School Membership (FTE) is obtained by: Calculating the district’s total summer school resident pupil membership minutes Dividing the total by 48,600 and rounding to the nearest whole number A worksheet is available to assist in this process. http://www.dpi.wi.gov/sfs/xls/pi1804_00a.xls

45. Summer School Fees  Fees for the resident student or parent may be charged for individual use supplies (towels, gym clothes, band instruments, notebooks, pencils), textbooks, or similar items (workbooks) if the district claims state aid under state statute 121.14.  Fees may be charged for social, recreational, or extracurricular summer classes and programs which are neither credited toward graduation nor eligible for state aid [s. 118.04(4)].

46. Summer School Fees  For any summer school fee charged: the fee must fund an item that is legally permitted and actually purchased for summer school use. the fee may be not used to subsidize the cost of any other classes or students. the fee must be based upon the actual cost of the applicable item(s).

47. Audit of Summer School Fees  If you district is required to have a membership audit, the auditor will review your summer school fte and any associated summer school fees.  The auditor will question fees if: the fee does not appear to be legal. the amount of the fee exceeds the actual cost.

48. Audit of Summer School Fees  If a fee is deemed excessive or inappropriate: The district may be asked to provide assurance that fees charged in the future will be in accordance with statutory requirements. The summer school fte claimed may be adjusted or disallowed. The district will be required to have a membership audit of summer school fte in the following year.

49. September Pupil Count Report  Report used to collect district count data for the 3rd Friday in September.  Data is converted to full-time equivalency and used in the calculation of a district’s revenue limit and equalization aid.

50. General Count Guidelines  In general, count the student if: The student is a district resident. The District is financially responsible for the student’s educational program. The student is present for instruction on the count date or meets the before and after rule.

51. General Count Guidelines  Present – The student is in attendance for instruction on the count date.  Absent - The pupil is absent on the count date, but has attended at least one day during the school year prior to the count date and at least one day during the school year after the count date, and has remained a resident of the district during the period of absence.

52. Count Categories  Preschool Special Education  4 YK – 437 hours  4 YK – 524.5 hours  5 YK – ½ day  5 YK – 3 full days  5 YK – 4 full days  5 YK – 5 full days  5YK – Blended  Grades 1 - 12

53. Preschool Special Education  Students must be at least 3 years of age as of the count date.  Student must have an IEP (Individualized Education Plan) and be receiving instructional services.  No minimum required number of instruction hours

54. 4 Year Old Kindergarten  Districts should only use these two lines if: the 4 year old kindergarten program is open to all students the program is funded by district resources—not solely by Title One funds. the student is at least 4 on or before September 1 st.

55. 4 Year Old Kindergarten  4 Yr – 437 Hours: program shall have at least 437 hours of instruction, which can include up to 87.5 hours of outreach activities.  4 Yr – 524.5 Hours: program shall have at least 437 hours of instruction and 87.5 hours of outreach. The school shall NOT substitute instructional time for outreach activities.

56. 4 Year Old Kindergarten  Beginning in 2006-07, districts starting a new 4K program will need to sign-off on a program assurance form verifying that the program meets all 4K requirements  Contact Jill Haglund, Early Childhood Education, 608-267-9625, with questions

57. 5 Year Old Kindergarten  5 Yr Old – Half Day Program  5 Yr Old – Three Full Day Program  5 Yr Old – Four Full Day Program  5 Yr Old – Five Full Day Program  5 Yr Old – Blended Program The student must be at least 5 years of age on or before September 1 st.

58. Grades 1 - 12  Students must be 6 years of age on or before September 1 st of the current year or be admitted under early admittance guidelines as defined by the Board of Education.

59. October 15 th Aid Certification  On or shortly before October 15 th, the school financial services team will calculate the district’s current year aid certification.  This amount represents the amount of aid the district will receive during the current year.  This number should be used in the current year revenue limit calculation.

60. Equalization Aid  Purpose of Equalization Aid is to: Cause the State to assume a greater portion of costs Relieve the property tax burden

61. Equalization Aid  Equalization Aid Formula is: a cost-sharing formula based on a district’s ability to pay, as measured in terms of property wealth per pupil Compared to a state guaranteed tax base (guaranteed valuation per pupil)

62. Equalization Aid  Goal of the current “school aid” formula is to: Distribute funding so that school districts that spend the same amount per pupil will have a similar tax rate, regardless of their property value per pupil. However, the formula doesn’t guarantee all districts will have the same tax rate; rather, it attempts to achieve equalization of each district’s tax base.

63. Equalization Aid  Three major District factors that affect the calculation of equalization aid: Membership Shared Cost Per Member (expenses funded by state aid and taxes on per member basis) Equalized Value Per Member

64. Equalization Aid  Major State factors that affect the equalization aid calculation Total amount of funds appropriated for general aid on a state-wide level Value of property guaranteed per pupil

65. District “X”District “Y” Shared Cost/$9,502$9,502 Member Property Value/$201,156$345,925 Member State Aid/$7,851$6,767 Member % Aided83%71%

66. Equalization Aid  Districts with the lowest property valuations receive the highest % of state aid whereas districts with the highest property valuations receive the lowest % of state aid.  The least property wealthy K-12 district in the state has an equalized property value per member of $201,156 whereas the most wealthy K-12 district has a per member value of $5,521,325.

67. Revenue Limits  In 1993-94, revenue limits were implemented to control increases in school property tax levies.  Revenue limits are determined on an individual district basis and are not affected by changes in other districts.  The calculation involves both district- specific and state variables.

68. Revenue Limit  A revenue limit restricts the amount of money a district can receive as a result of: State general aid Local property taxes Department of Revenue Computer Aid It does not include all revenues It is not a spending limit

69. Revenue Limits $ 700,000 $1,400,000 $2,100,000 $2,800,000 $3,500,000 $4,200,000 $4,900,000 Revenue Limit Equalization Aid Computer Aid Taxes

70. Revenue Limits $ 700,000 $1,400,000 $2,100,000 $2,800,000 $3,500,000 $4,200,000 $4,900,000 Revenue Limit Equalization Aid Computer Aid Taxes

71. Revenue Limits $ 700,000 $1,400,000 $2,100,000 $2,800,000 $3,500,000 $4,200,000 $4,900,000 Revenue Limit Equalization Aid Computer Aid Taxes

72. Revenue Limits  Each year, a district’s revenue limit is: Based upon a district’s 3 year full-time equivalent (fte) rolling enrollment average Allowed to increase on a per member basis that is tied to inflation (March to March CPI All Urban Index) Can be changed by legislative action 2007-08 - $264.12 per member (governor’s proposal)

73. Revenue Limits  Authority to exceed the revenue limit is given by a referendum The State does not control when or for what purposes districts should consider a referendum. The issue of maintaining a school program or voting to exceed the revenue limit is a local decision.

74. Referendum  Recurring Exemption: increase to the revenue limit that is “base –building” – once given the taxing authority, the district always maintains the taxing authority  Non-recurring Exemption: increase to the revenue that is not “base-building” - only given the authority based on the timeframe identified in the resolution

75. Referenda Report  Report used to collect data an any district referendums.  Districts must notify DPI of upcoming referendum within 10 days of adopting the resolution.  After the referendum vote, the district should update the vote to show the vote tally.

76. Referenda Report  Information required: District contact Purpose of borrowing or use of revenue limit dollars Dollar amount of the proposed borrowing (Debt Referendum) Recurring vs. non-recurring and the number of years involved (Revenue Limit Referendum) Actual, complete wording of resolution/ballot question.

77. Referenda Report  Districts are also required to send to DPI a copy of the adopted resolution authorizing election, and;  A copy of board of canvassers statement which reports official vote tally within 10 days of the election;  They can both be faxed to Gene Fornecker, at (608) 266-2840, or mailed.

78. One final note: Be sure you know what your resolution really says! …for each year of the 2005-06 through 2009-10 school years shall include, on a recurring basis, an amount of $400,000 in excess of the revenue limits… Referenda Report

79. Which scenario does this mean? #1, #2 or something else? #1 or #2

80. Revenue Limit  Although the district should be creating an estimated revenue limit throughout the entire budget development process, the revenue limit from which the tax is levied is calculated in late October.

81. Tax Levy Report  Report used to collect the district’s current year tax levies and mill rates.  Data from the report is automatically downloaded into tax levy certification forms that are sent by the district to the taxing municipalities.  Data from the report is automatically shared with the Department of Revenue.

82. Tax Levy  On or before November 1, every public school board must approve the levy amounts necessary to operate and maintain district schools (s.120.12(3) Wis. Stats.),120.12(3) to meet any irrepealable tax obligations (s.120.12(4) Wis. Stats.).120.12(4)  School district property taxes include levies for the general operations, debt service, capital expansion, and community service funds  On or before November 6, the school district clerk must certify to each municipal clerk the amount of school district tax to be assessed on the tax rolls of that municipality (s.120.12(3) Wis. Stats.).120.12(3)

83. PI 1504 – Budget Report  Report used to collect the district proposed revenue and expenses for all funds for the current fiscal year.  Data is used to calculate the district’s following year aid estimate provided on July 1 st as per state statute 121.15(4)(b)

84. Special Education Budget Report  Report used to collect the district’s proposed special education (fund 27) expenditures and revenues.  Data is used to estimate future special education categorical aid payments.

85. July - December What activities take place relating to the next fiscal year (2008-09)?

86. 2008-09 Budget Development  Although detailed budget development usually doesn’t start until late December/early January, you should be thinking about: Enrollment trends Changing district dynamics (development, population trends, etc……) Revenue trends Impact of negotiations

87. 6 Months zipped by! Are you ready for 6 more???

88. January - June What activities take place relating to the prior fiscal year (2006-07)?

89. Prior Year Finishing Touches  The School Financial Services team is auditing the prior year annual and audit reports.  Prior year activity is primarily limited to responding to questions that arise as a result of those audits.

90. January - June What activities take place relating to the current fiscal year (2007-08)?

91. January Pupil Count Report  Report used to collect district count data for the 2 nd Friday in January.  Data is converted to full-time equivalency and used in the calculation of a district’s equalization aid.

92. Membership Audit  On or about February 1 st, the School Finance Team will announce which districts are required to have a membership audit.  The district’s auditor will verify the district’s reported counts for 2 nd Friday in September 3 rd Friday in January Summer School (as well as fees)

93. Debt Schedule Report  Report used to collect the district’s long-term debt repayment schedules for all district indebtedness.  Data used to project future equalization aid payments from a state-wide perspective.  Debt schedule report should be updated anytime new debt has been issued or existing debt has been amended.

94. Budget Amendments  As the current budget year progresses, you may find expenditure needs that differ from the budget that was originally approved. Changes in amount of appropriation and purposes (functions) must be approved by a two-thirds vote of the school board. Publish a class 1 notice of the budget change within 10 days of Board approval.

95. Budget Amendments

96. January - June What activities take place relating to the next fiscal year (2008-09)?

97. 2008-09 Budget Development  Review District Accounting Structure Determine if the current accounting structure meets your information and reporting needs Determine if the school financial services team has made any changes to WUFAR that would require new account codes http://www.dpi.wi.gov/sfs/wufar.html http://www.dpi.wi.gov/sfs/wufar.html

98. 2008-09 Budget Development  Develop enrollment projections Used in the calculation of the revenue limit Used in determining staffing needs Used in calculating other revenues such as local fees

99. 2008-09 Budget Development  Develop Preliminary Revenues Calculate an estimated revenue limit – very important as this is the largest revenue source of the district and greatly impacts the district’s expenditure budgeting Review trends to estimate categorical aids and other local revenues Identify potential grant sources

100. 2008-09 Budget Development  Develop Preliminary Expenditures Reviewing staffing needs and expenditure levels – many contracts require advance notice in the event staff reductions, layoffs, non-renewals, etc……are needed Review program offerings to see if expenditure requirements have changed Review trends in utility, insurance, and other related expenses

101. Take a deep breath! You are not alone……….

102. Questions???  Brad Adams, Consultant, 267-3752  Lori Ames, Consultant, 266-3464  Karen Kucharz, Consultant, 267-9707  Jerry Landmark, Asst. Dir., 267-9209  Kathy Guralski, Auditor, 266-3862  Gene Fornecker, Auditor, 267-7882  Natalie Rew, Auditor, 267-9212  David Carlson, Director, 266-6968